If You Have a Checking Account at a Local Bank

question 57

Multiple Choice

If you have a checking account at a local bank, your bank account there is a(n)

• A)asset to the bank and an asset to you.
• B)liability of the bank and a liability of yours.
• C)liability of the bank and an asset to you.
• D)asset to the bank and a liability of yours.

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Definitions:

Statute of Frauds

A legal concept that requires certain types of contracts to be in writing and signed by the party to be charged, in order to be legally enforceable.

Collateral Promise

A collateral promise is a secondary agreement that one party will assume responsibility for another's debt or obligation if that other party fails to fulfill it.

Secondary Obligations

Duties or liabilities that arise not from the primary contract but as a result of ancillary or supplementary agreements or circumstances.

Statute of Frauds

A legal concept that requires certain types of contracts to be in writing and signed by all parties involved to be enforceable.