A Taker of an Instrument Who Is a Holder in Due

question 31

Multiple Choice

A taker of an instrument who is a holder in due course at the time of the transfer, but who thereafter learns of a defense:

• A) becomes a holder through a holder in due course.
• B) becomes an ordinary holder.
• C) remains a holder in due course.
• D) becomes an assignee.

---

Definitions:

Fair Value Measurements

An accounting standard for estimating the price at which an asset or liability could be exchanged in an orderly transaction between market participants at the measurement date.

Mark-to-Model

An accounting practice where the price or value of an asset is determined based on a financial model instead of current market prices.

Fair Value Accounting

An accounting approach where assets and liabilities are recorded at their current market value, rather than their historical cost.

Financial Statements

Documents that report on a company's financial health and performance, including the balance sheet, income statement, and cash flow statement, offering insight into its operations and financial position.