John Is a Holder in Due Course of a Check

question 8

Multiple Choice

John is a holder in due course of a check.John goes to the drawee bank,Last Chance Bank,to cash the check.What is the liability of Last Chance?

• A)Last Chance Bank is primarily liable on the check.
• B)Last Chance Bank is not primarily liable on the check until it accepts the check.
• C)Last Chance Bank is secondarily liable on the check.
• D)Last Chance Bank is not secondarily liable on the check until it accepts the check.

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Definitions:

Opportunity Costs

The cost of foregoing the next best alternative when making a decision or choosing one option over another.

Opportunity Cost

The financial consequence of rejecting the subsequent optimal choice when deciding.

TV Commercials

Short segments on television intended to persuade viewers to buy products or services.

Investment

The purchase of goods that are not consumed today but are used in the future to create wealth.