2) What is the difference between VECTOR and BITMAP graphics? Explain both terms.

A BITMAP is an organisation of memory or image file format used to store digital images.
http://en.wikipedia.org/wiki/Bitmap_image_format

A VECTOR graphic is a graphic which uses geometric shapes such as lines, curves, points and ploygons to make images in computer graphics. http://en.wikipedia.org/wiki/Vector_graphics