Omar Receives a Check from Trudy Drawn on Shelfari Bank

question 29

Multiple Choice

Omar receives a check from Trudy drawn on Shelfari Bank.Shelfari Bank improperly dishonors the check when Omar attempts to cash it.Which of the following is true of this case?

• A)Omar is the holder of the check,and hence,has recourse against Trudy,the drawer.
• B)Shelfari Bank,the drawee bank,is liable to Omar,the holder,for improperly dishonoring the check.
• C)Omar has recourse against both the parties-the drawer,Trudy,and the drawee bank,Shelfari Bank.
• D)Omar has recourse against Shelfari Bank,in case Trudy does not reimburse Omar.

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Definitions:

Oligopoly

A market structure characterized by a small number of firms controlling a large market share, leading to limited competition and potentially higher prices for consumers.

Monopolistic Competition

A competitive landscape where numerous companies offer products that are alike but not the same, providing an opportunity for limited market control and the distinction of products.

Concentration Ratio

A statistical measure that indicates the extent of competition in a market, calculated as the market share of the largest firms.

Economic Profits

The excess of total revenues over total costs, including both explicit and implicit costs, representing the profit beyond the normal return on investment.