Which of the Following Is True About the Requirement for a Holder

question 33

Multiple Choice

Which of the following is true about the requirement for a holder in due course to give value for an instrument?

• A) It can be met in any way that the consideration requirement can be met in an ordinary contract.
• B) It can be met only if the holder has paid cash for the instrument.
• C) In order to meet the requirement to give value,the value given must be comparable to the value of the instrument received.
• D) Acceptance of the instrument in settlement of a preexisting claim meets the value requirement.
• E) An unperformed promise meets the value-given requirement so long as the promise is performed prior to the actual collection of any amount on the instrument.

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Definitions:

Society's Well-Being

The overall economic and social conditions under which a community or society operates and thrives.

Total Profit Maximization

The process of adjusting output and pricing to achieve the highest possible profit in a business operation.

MB = MC

The optimal condition in economics where the marginal benefit (MB) of an action is equal to its marginal cost (MC), leading to efficient allocation of resources.

MB < MC

A condition where the marginal benefit of producing an additional unit is less than the marginal cost of producing that unit.