Which of the Following Will Not Discharge a Party from Liability

question 44

Multiple Choice

Which of the following will not discharge a party from liability on a negotiable instrument?

• A) payment by the party who is primarily liable
• B) cancellation of the instrument
• C) a subsequent holder releasing collateral securing the instrument
• D) failing to comply with a restrictive indorsement

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Definitions:

Earnings Rate

The rate of return on an investment or project, often expressed as a percentage of the investment's cost.

Compound Interest

This refers to the calculation of interest on the beginning balance of a loan or deposit, adding in the interest that has built up over time from prior periods.

Present Value

The value as of now of a future amount of money or subsequent cash flows, based on a chosen return rate.

Compound Interest

Interest that is determined by taking into account not only the original principal of a deposit or loan but also all the interest that has been compounded in previous cycles.