Use Estimation to Select the Best Response

question 113

Multiple Choice

Use estimation to select the best response. Do not calculate. A $147,000 30-year loan at 10% + 1.5 points + $200 would have a comparison rate of __________.

• A) 10%
• B) 1.5%
• C) less than 1.5%
• D) more than 10%
• E) less than 10% but more than 1.5%

Recognize the legal implications of the method of negotiation and transfer of instruments.

Understand the importance of authenticity and intent in endorsing negotiable instruments.

Identify factors that affect a party's liability on a negotiable instrument.

Comprehend the requirements and effects of specific conditions or characteristics on the negotiability of instruments.

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Definitions:

Legitimate use of force

Refers to the socially sanctioned, legal, or accepted use of physical power or coercion by individuals or institutions, especially by the state or law enforcement, to maintain order or enforce laws.

Rational-legal authority

A form of leadership where authority is based on legal legitimacy and bureaucratic procedures, as opposed to traditional or charismatic forms of governance.

State

An institution that maintains a monopoly over the legitimate use of force in a given territory.

Political systems

Refers to the framework of formal legal institutions, processes, and norms through which a society organizes its governance and allocates authority to make and enforce policies.