Sylvester, Acting as a Representative Agent for Jerry, Signs a Negotiable

question 23

Multiple Choice

Sylvester, acting as a representative agent for Jerry, signs a negotiable instrument with the signature-Jerry, by Sylvester, agent. What kind of liability does Sylvester have for this type of signature?

• A) He is not liable on the instrument.
• B) He is liable to the payee.
• C) He is liable to Jerry.
• D) He is liable to the HDC of the instrument.

---

Definitions:

Money Market

A financial market for debt securities with maturities of less than 1 year (short term). The New York money market is the world’s largest.

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically corporate or governmental.

Secondary Market

The financial market where investors buy and sell securities they already own, as opposed to the primary market where securities are first issued.

Intrinsic Value

The inherent worth of a company, stock, currency, or product determined through fundamental analysis without reference to its market value.