Which of the Following Is a Characteristic of a Presentment

question 36

Multiple Choice

Which of the following is a characteristic of a presentment warranty on an instrument presented for payment?

• A) The transferor has no knowledge of any insolvency.
• B) The transferor has good title to the instrument.
• C) No defenses of any party are good against the transferor.
• D) The instrument has not been materially altered.

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Definitions:

Informational Efficiency

A characteristic of financial markets where all relevant information is quickly and accurately reflected in security prices, allowing for fair and efficient trading.

Active Trading

The buying and selling of securities with the intent of profiting from short-term price movements.

Securities Analysts

Securities Analysts are professionals who evaluate and report on the potential of investments, including stocks, bonds, and other securities.

Potential Returns

The expected gain or loss from an investment, reflecting the possible outcomes of an investment's performance.