Under the Uniform Commercial Code's Indorsers' Liability Rules,drawers of Checks

question 51

Multiple Choice

Under the Uniform Commercial Code's indorsers' liability rules,drawers of checks and drafts and unqualified indorsers of negotiable instruments have ________ liability on the instruments.

• A) conditional
• B) stipulated
• C) primary
• D) secondary
• E) tertiary

---

Definitions:

Money Supply

The total quantity of money available in the economy at a specific time, including currency, coins, and balances held in checking and savings accounts.

Currency

A system of money in common use, especially in a nation, for facilitating the exchange of goods and services.

Excess Reserves

The capital reserves held by a bank or financial institution in excess of what is required by regulators, providing a cushion against potential financial instability or liquidity needs.

Banking System

The network of financial institutions that provide banking services, including accepting deposits, providing loans, and managing payment systems.