References to Other Agreements in Negotiable Instruments

question 58

Multiple Choice

References to other agreements in negotiable instruments:

• A) destroy negotiability unless the recital makes the instrument subject to, or governed by, the terms of another agreement.
• B) do not destroy negotiability in any circumstances.
• C) do not destroy negotiability unless the recital makes the instrument subject to or governed by the terms of another agreement.
• D) None of these.

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Definitions:

Utility Function

A mathematical representation describing how a consumer ranks different bundles of goods according to levels of satisfaction.

Risk Averse

A preference for guaranteed outcomes over those with uncertainty, even if the uncertain outcomes might offer a higher expected return.

Coin-Flip Bet

A gambling proposition where the outcome is determined by the flip of a coin, representing a 50/50 chance of winning or losing.

Wealth

The abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions.