If a Negotiable Instrument Is Transferred by Negotiation, the Transferee

question 533

Multiple Choice

If a negotiable instrument is transferred by negotiation, the transferee takes the instrument:

• A) with all of the transferor's rights and responsibilities
• B) with all of transferor's responsibilities, but none of the rights
• C) with the duties that have been assigned to the instrument by the bearer
• D) with the rights that have been assigned to the instrument by the holder in due course
• E) none of the other choices

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Definitions:

Available-For-Sale

A classification of financial assets indicating that they are not held for trading or long-term investment purposes, and their value can be adjusted based on market valuations.

Realized Gain

The profit earned from the sale of an asset, which has been converted from an unrealized gain into cash or an equivalent.