A Bank May Issue a Credit Memorandum for

question 111

Multiple Choice

A bank may issue a credit memorandum for

• A) a bank service charge.
• B) an NSF (not sufficient funds) check from a customer.
• C) the collection of a note receivable for the depositor by the bank.
• D) the cost of printing checks.

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Definitions:

Capital Stock

The total amount of a company's shares of stock that have been authorized, issued, and purchased by investors, representing ownership in the company.

Preferred Stock

Equity securities that provide a fixed dividend and have priority over common stock in the event of a company's liquidation.

Common Stock

A type of security that represents ownership in a corporation, entitling the shareholder to a share of the company's profits and assets.

Capital Stock

The total amount of a company's stock (both preferred and common) authorized for issuance, representing ownership in the company.