A Draft Is Payable "To the Order of Joe Jones

question 25

Multiple Choice

A draft is payable "to the order of Joe Jones or to bearer." Sally finds it and demands payment.Should the drawer pay Sally?

• A) No,unless Joe Jones' name is crossed off
• B) No,unless "bearer" is handwritten
• C) Yes,an instrument made payable both to order and to bearer is payable to bearer
• D) Yes,since the instrument is ambiguous,Joe Jones has no right to payment and only the bearer has the right to demand payment

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Definitions:

Escalation Of Commitment

A pattern where individuals continue to invest in a decision despite evidence of its ineffectiveness or mistakes.

Dollar Cost Averaging

An investment strategy where a fixed dollar amount of a particular investment is purchased on a regular schedule, regardless of the investment's price.

Framing Error

A cognitive bias where information is presented or perceived in a way that influences decision-making or judgment.

Stakeholder Audit

A systematic examination to identify all relevant stakeholders of an organization and analyze their interests and potential impact on the organization.