Marti Issues a Check Payable to the Order of John,who

question 32

Multiple Choice

Marti issues a check payable to the order of John,who indorses the check in blank and transfers the check to Amy,who transfers the check to Bill without indorsement.Bill wishes to cash the check.Which of the following best describes the liabilities of the parties?

• A) The drawee bank is primarily liable on the check.
• B) At this point,no one is primarily liable on the check.
• C) The drawee bank is not primarily liable on the check until it accepts the check.
• D) Marti is primarily liable on the check.
• E) B and C only are correct.

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Definitions:

Smartphone Market

The sector of the economy that deals with the production, sale, and distribution of smartphones and related services.

Societal Loss

The total loss in welfare or efficiency that a society faces, often due to inefficiencies or externalities in markets.

Constant Marginal

indicates a condition where the marginal increase or decrease of a variable remains constant with each additional unit, often referred to in the context of production or utility.

Average Cost

The total cost of production divided by the total units produced, also known as cost per unit.