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:

Federal Reserve

The central bank of the United States, overseeing the nation's monetary policy, regulation of banks, and stability of the financial system.

Tax Decrease

A decrease in the tax rates applied to individuals or companies by governmental authorities.

Money Supply

The complete tally of economic assets in an economy at a designated moment, such as cash, coins, and money in checking and savings accounts.

Net Exports

The value of a country's total exports minus the value of its total imports. It is a component of GDP that indicates a country's trade balance.