If a Bank Dishonors a Check for No Good Reason

question 14

Multiple Choice

If a bank dishonors a check for no good reason, the customer can collect from the bank

• A) only the service fee charged by the bank.
• B) all damages the customer suffers.
• C) any damages that result from injury to the customer's reputation resulting from a bad credit rating or from being arrested and prosecuted.
• D) all service fees charged by the bank and all damages the customer suffers.

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Definitions:

T-Bills

Short-term government securities issued at a discount from the face value and maturing at par, typically used as a low-risk investment.

Money Market

A financial market for debt securities with maturities of less than 1 year (short term). The New York money market is the world’s largest.

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically corporate or governmental.

Secondary Market

The financial market where investors buy and sell securities they already own, as opposed to the primary market where securities are first issued.