With Respect to the Secure Position of a Holder in Due

question 21

Multiple Choice

With respect to the secure position of a holder in due course,which of the following would most strongly support the reluctance of banks to honour cheques without verification of the various endorsements appearing on a cheque?

• A) ability to report discrepancies within a reasonable time
• B) the absence of a verification agreement
• C) inability to recover advanced funds on an invalid cheque
• D) banker's responsibility to know his customer's signature

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Definitions:

Continental Crust

The thick, generally granitic part of the Earth's crust that forms the large land masses or continents, distinct from the denser, basaltic oceanic crust.

Cooling History

The record of the cooling and solidification of magma or lava, which informs geologists about the thermal and crystallization processes of igneous rocks.

Mid-Ocean Ridges

Underwater mountain ranges, formed by plate tectonics, where new oceanic crust is created through volcanic activity.

Heating of Rock

The process of increasing the temperature of rocks, often leading to changes in physical and chemical properties.