Brad Wrote a Check to Clara for $1,000 on His

question 9

Multiple Choice

Brad wrote a check to Clara for $1,000 on his account at First Bank.He then took it to his bank for certification.The bank wrote "certified" on the face of the check.Brad then gave the check to Clara.When Clara took the check to First Bank,they refused to pay,claiming that there was not enough money in Brad's account to cover the check.Which of the following is correct?

• A) First Bank is primarily liable on the check,because it has already accepted it.
• B) Clara has no recourse under the circumstances.
• C) Brad must pay Clara $1,000.
• D) First Bank must reimburse Brad for the $1,000.

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Definitions:

Unregulated Speculation

Financial investments in markets without governmental oversight, potentially leading to volatile market conditions and financial crises.

Dynasty

A line of hereditary rulers of a country or empire; a succession of people from the same family who play a prominent role in business, politics, or another field.