Notice of Dishonor of an Instrument Must Be Given

question 51

Multiple Choice

Notice of dishonor of an instrument must be given:

• A) by a bank before midnight of the third banking day following the banking day on which it receives notice of dishonor.
• B) by a bank before midnight on the next banking day following the banking day on which it receives notice of dishonor.
• C) by a nonbank, with respect to an instrument taken for collection, within three business days following the day on which it received notice.
• D) in all situations within seven calendar days following the day on which dishonor occurred.

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Definitions:

Marginal Utility

The extra pleasure a customer receives from using an additional unit of a product or service.

Donuts

A type of fried dough confection or dessert food, commonly shaped in a ring or filled, known for its sweet taste and various toppings.

Day

A period of 24 hours as a unit of time, representing the time it takes for the Earth to complete one rotation around its axis.

Indeterminate

A situation or outcome that cannot be predicted, decided, or clearly defined.