A Principal-Agent Relationship Is Created Between a Customer and a Bank

question 17

Multiple Choice

A principal-agent relationship is created between a customer and a bank:

• A) only if the customer deposits a check that the bank must collect for the customer
• B) any time the customer deposits an amount into the customer's checking account
• C) only when the customer writes a check against her account
• D) if the customer deposits a check that the bank must collect for the customer or if the customer writes a check against her account

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Definitions:

Exempt Transactions

Transactions that are provided an exception from certain legal requirements or regulations, often found in securities law.

Intrastate Issues

Matters or disputes that occur within the same state and are governed by state laws.

Limited Offers

Promotional or sales initiatives that are available for a restricted time frame or quantity, often used to create urgency or exclusivity.

Tombstone Advertisement

A print advertisement that announces a forthcoming sale of securities in a format similar to that of a tombstone.