Those Who Disclaim Liability and Are Not Secondarily Liable on Instruments

question 19

Multiple Choice

Those who disclaim liability and are not secondarily liable on instruments they endorse are referred to as ________.

• A) unqualified indorsers
• B) qualified indorsers
• C) agents
• D) accommodation parties

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Definitions:

Stock C

A generic term that could refer to a third class of stock; however, without specific context, its meaning can vary.

Arbitrage Pricing Theory

A theory that designs to predict the price of assets by considering the relationship between a financial asset's returns and the macroeconomic factors that directly affect it.

Expected Return

The anticipated value or profit generated by an investment over a given period, factoring in all potential outcomes and their probabilities.

Systematic Risk

The danger that affects all investments within an entire market or a specific sector, commonly referred to as market risk or non-diversifiable risk.