An Indorser Is Discharged If a Check Is Not Presented

question 63

Multiple Choice

An indorser is discharged if a check is not presented for payment or given to a depositary bank for collection within ____ days of the indorsement.

• A) ten
• B) fourteen
• C) thirty
• D) ninety

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Definitions:

Unrealized Gain

The potential profit that exists on paper resulting from an investment that has not yet been sold for cash.

Fair Value Adjustment

A process of adjusting the book value of an asset or liability to reflect its current market value.

Available-for-Sale

A category of securities that are not classified as held-to-maturity or trading securities, and are recorded at fair value.

Unrealized Loss

A loss that occurs on paper due to a decrease in the value of an investment, but has not been realized through a transaction.