Kellie's Date of Possession for the Home She Recently Purchased

question 40

Multiple Choice

Kellie's date of possession for the home she recently purchased is October 1.Her lawyer instructed her to provide the cash to close by way of a certified cheque in the amount of $35 000,payable to "Sheps & Shaps LLP in trust," by September 29.Why did Kellie's lawyer require the payment of these funds in this manner?

• A) It prevents the drawee from requesting a stop payment on the cheque.
• B) A cheque is a self contained obligation,independent of any outside circumstances.
• C) The major risk involved with cheques relates to the financial health of the drawee.
• D) Risk is eliminated,as the payment of funds from bank reserves is guaranteed.

---

Definitions:

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry.

Point-Of-Sale Disclosure

Information provided to consumers at the time of sale, detailing important facts and conditions about the product or service being purchased.

Investment Products

Various types of assets and securities (e.g., stocks, bonds, mutual funds) that individuals can invest in hoping to earn returns.

PCAOB

Public Company Accounting Oversight Board, a nonprofit corporation established by Congress to oversee the audits of public companies to protect investors.