When a Wire Transfer Is Involved,what Happens If a Receiving

question 19

Multiple Choice

When a wire transfer is involved,what happens if a receiving bank mistakenly pays a greater amount to the beneficiary than ordered?

• A) The originator is liable for the entire amount paid, and has no right of recovery.
• B) The originator is liable for the entire amount paid, but may recover only from the person or company who ordered the wire transfer.
• C) The originator is liable for the entire amount, but may recover only from the improper beneficiary.
• D) The originator is liable for only the amount he or she instructed to be paid.
• E) The originator is not liable for any amount, and the transaction is void.

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Definitions:

Allocative Efficiency

A state of the market where resources are allocated in a way that maximizes the net benefit to society, ensuring that every good or service is produced up to the point where the last unit provides a benefit equal to its cost of production.

Productive Efficiency

A situation where the economy or a production process is unable to produce more of one good without reducing the production of another good, using available resources in the best way.

Normal Goods

Goods for which demand increases as consumer income rises, and decreases as consumer income falls, reflecting a direct relationship between income and demand.

Competitive Market

A market structure characterized by a large number of buyers and sellers, homogenous products, and no single buyer or seller can influence the market price.