Those Who Disclaim Liability and Are Not Secondarily Liable on Instruments

question 19

Multiple Choice

Those who disclaim liability and are not secondarily liable on instruments they endorse are referred to as ________.

• A) unqualified indorsers
• B) qualified indorsers
• C) agents
• D) accommodation parties

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Definitions:

Asymmetric Information

A situation where one party to a market transaction has much more information about a product or service than the other. The result may be an under- or overallocation of resources.

Inefficient Outcomes

Situations where resources are not allocated optimally, resulting in potential losses in economic welfare.

Allocative Efficiency

A state of resource allocation where it is impossible to make any one individual better off without making someone else worse off, often achieved when marginal cost equals marginal benefit.

Government Budget

A financial statement presenting the government's projected revenue and spending for a specific fiscal period, outlining planned financial operations and priorities.