When the Payee of a Check Indorses a Check to Another

question 58

Multiple Choice

When the payee of a check indorses a check to another person (the indorsee) ,what is true about the indorsee?

• A) The indorsee must get the consent of the drawer to further transfer the check.
• B) In order to collect on the check, the indorsee must present the check for payment at the drawee bank.
• C) The indorsee cannot indorse the check to another indorsee.
• D) The indorsee becomes a holder, who can either demand payment, or indorse the check to yet another indorsee.
• E) The indorsee must join with the payee of the check when seeking payment.

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Definitions:

Active Policy Lags

The delays in the implementation and effectiveness of policy measures due to administrative, decision-making, or economic factors.

Economy

The system or range of economic activities in a region, country, or community, including the production, consumption, and trade of goods and services.

Self-correct

The ability of an economic market to adjust and return to equilibrium without external intervention.

Aggregate Demand Curve

Represents the total spending on domestic goods and services at various price levels, showing the inverse relationship between price level and demand.