Which of the Following Would Most Strongly Support the Reluctance

question 23

Multiple Choice

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

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Definitions:

Transfer of Possessions

The act of moving ownership or control of property or assets from one party to another.

Debtor

An individual or entity that owes a debt or is obligated to make payments to another party, known as the creditor.

Creditor

An individual, organization, or entity that is owed money or other forms of compensation by a debtor.

Res Ipsa Loquitur

“The thing speaks for itself.”