A Postdated Check Is One in Which the Buyer Fills

question 49

True/False

A postdated check is one in which the buyer fills in the date on the check after he or she has written to whom the check is payable to.

---

Definitions:

Put Provision

A clause found in certain securities that allows the holder to force the issuer to repurchase the security at specified prices before maturity.

Fixed Rate Bond

A bond that pays a predetermined interest rate to investors for the entire term of the bond.

Fallen Angel

Originally investment-grade bonds that have been downgraded to junk bond status due to the issuer's weakened financial condition.

Investment-Grade Bond

A bond with a high credit rating, indicating lower risk of default, making it an attractive investment option for conservative investors.