Kelly Wrote a Check to Trish,which Trish Immediately Changed from $20

question 27

Multiple Choice

Kelly wrote a check to Trish,which Trish immediately changed from $20 to $120.She negotiated the check to Carl for value,who in turn took it to Kelly's bank for certification.Kelly's bank checked his account and certified the check since there were sufficient funds to cover the check.Thereafter,Carl gave the check to Central Motors (CM) as part of the down payment for his car.CM presents the check to Kelly's bank for payment and they discover the alteration.What consequence?

• A) Bank can sue CM for breach of presentment warranty of no alteration.
• B) Bank can charge Carl's account for $120.
• C) Bank can refuse to pay CM more than $20.
• D) Bank must pay CM $120 and cannot sue them for breach of warranty.

Distinguish between permanent and term life insurance, and understand their applications.

Acknowledge the importance of the financial stability of insurance companies and how it affects policyholders.

Realize the importance of aligning life insurance coverage with changing personal financial needs over time.

Understand the methodology to calculate life insurance needs and the factors affecting life insurance premiums and coverage.

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Definitions:

Low-beta Stocks

Stocks with a beta coefficient lower than one, indicating they are less volatile than the market and tend to offer more stable returns.

High-beta Stocks

Stocks that are more volatile than the market average, possessing a beta value greater than 1, indicating they have a higher risk and potential return.

Systematic Risk

A type of risk that affects all securities in a market or market segment, unable to be lessened through diversification.

Influences

Factors or forces that have an effect on the outcomes or behaviors in a situation.