Answer to Question 1
A graded stream is one in which the channel slope has adjusted so that the stream velocity is just enough to transport the sediment load. In other words, the stream is at a dynamic equilibrium between aggradation and degradation. An individual stream can have both graded and ungraded portions. This is actual the rule and not the exception. Disturbances in the drainage basin can disrupt this equilibrium.
Answer to Question 2
E