Which of the Following Is the Best Description of an Indorsement

question 44

Multiple Choice

Which of the following is the best description of an indorsement?

• A) A signature that creates no new legal obligations.
• B) A signature that often creates potential liability for the indorser.
• C) A transfer that creates no new legal obligations.
• D) A transfer that usually creates potential liability.
• E) A payment of an instrument that discharges the liability of the maker or drawer.

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Definitions:

Total Return

The overall financial gain or loss on an investment over a specific period, including dividends, interest, and capital gains.

Market

The collective system of buying, selling, and trading goods, services, or financial instruments among buyers, sellers, and intermediaries.

Discounted

Discounted involves adjusting the value of future cash flows to their present value using a specific interest rate, to account for time and risk.

Beta

A measure of the volatility, or systematic risk, of a security or portfolio in comparison to the market as a whole.