If Valley Bank Pays a Check Over a Stop Payment

question 40

Multiple Choice

If Valley Bank pays a check over a stop payment order of one of its customers,Valley Bank is subrogated to the rights of:

• A) the drawer against the payee or any other holder.
• B) any holder in due course on the item against the drawer.
• C) the payee or any other holder against the drawer.
• D) All of these are correct.

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Definitions:

Real GDP

Gross Domestic Product corrected for inflation, giving a truer depiction of the size of an economy and its growth trajectory over time.

Nominal GDP

The gross domestic product calculated at current market prices, without adjusting for inflation.

Transfer Payments

Payments made by the government to individuals or other entities without the government receiving any goods or services in return, such as welfare benefits or social security.

Net Exports

Net Exports is the value of a country's total exports minus the value of its total imports, indicating whether a country is a net exporter or importer.