Betty Issues a Note Payable to the Order of John

question 106

Multiple Choice

Betty issues a note payable to the order of John for $2,000.John properly indorses the note,but raises the amount to $20,000,and negotiates it to Mary.On the due date,Mary attempts to collect $20,000 from Betty.Betty refuses to pay.Assuming that Mary is a holder in due course,which parties can Mary recover from in a lawsuit?

• A) $20,000 from Betty, but nothing from anyone else
• B) $2,000 form Betty, but nothing from anyone else
• C) $2,000 from Betty, and $18,000 from John
• D) $20,000 from John, but nothing from anyone else
• E) nothing from anyone

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Definitions:

Federal Deficit

The amount by which the government's total budget outlays exceed its total receipts for a fiscal year.

Discretionary Fiscal Policy

Government policy involving deliberate manipulation of government spending and taxes to influence the economy based on current economic conditions.

Aggregate Demand

Aggregate demand is the total demand for all goods and services within an economy at a given overall price level and in a given time period.

Multiplier Effect

The phenomenon where an initial change in spending leads to a greater overall change in income and output in the economy.