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Digital signals:
A. Do not provide a continuous set of values.
B. Represent values as discrete steps.
C. can utilize binary systems.
D. can utilize decimal as well as binary systems.

Answer
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Hint: Digital signals are used for communication purposes; besides digital signals, we can find analog signals. The digital signals are the signals that give the signals or output in terms of numbers and alphabets, whereas the analog signals are not able to give the signals or output in terms of numbers and alphabets; instead, it will give signals in wave types (for example, sinusoidal waves, square waves, and many more.)

Complete step by step answer:
The digital signals are the signals that we can observe any results in terms of numbers (1, 2, 3...), alphabets (A, a, B, b....) and special characters (%, ^, &, ....). To provide the digital signals, we need more technology to be used, we need to program the device that gives signals for particular purposes.
So the devices are programmed using the Logic gates, which accepts only the numbers like 0 and 1 only, no other things are used to program. So the 0, 1 programming process or system is called the Binary system. So we can say that the binary system is the main source of outputs in digital signals.
Therefore, digital signals can utilize binary systems; it means the option (C) is correct.

Note:We may be confused between the binary and decimal systems because the binary consists of numbers and the decimal consists of numbers, but we need to remember the concept Logic gate, which uses only 0 and 1 as inputs. So there will be different combinations in the logic gate using 0 and 1, we have to go through them to find how the digital signals are achieved.