Without Notifying His Bank,Shabah Wrote a Postdated Check to State

question 45

Multiple Choice

Without notifying his bank,Shabah wrote a postdated check to State University for his tuition.Which statement is correct?

• A)Shabah's bank will be liable if it cashes the check before its date unless it gets permission from Shabah.
• B)Shabah's bank will not be liable if it cashes the check before its date.
• C)Shabah's bank cannot cash the check.
• D)Shabah's bank can only make provisional credit available until the check's date.

---

Definitions:

Simple Interest

Interest measured solely on the primary amount, not factoring in compounding.

Per Annum

Annually; indicating an amount or a statistical value per year.

Equivalent

Identical in worth, quantity, role, significance, and so forth.

Term Deposits

Fixed amount of money held at a financial institution for a fixed term, earning a guaranteed interest rate.