Ferdinand Bought a Boat from Isabelle

question 34

Multiple Choice

Ferdinand bought a boat from Isabelle.The price was $100 000.She required payment to be made by way of a cheque.Which of the following statements is TRUE?

• A)Ferdinand can create a cheque by ordering his sister, Esmeralda, to pay $100 000 to Isabelle.
• B)As soon as Ferdinand creates a valid cheque, Isabelle will acquire rights against the drawee.
• C)By writing a cheque, Ferdinand will create an order that requires the drawee to credit his bank account.
• D)Isabelle will not be able to cash Ferdinand's cheque unless she has a bank account.
• E)If Ferdinand creates a valid cheque, his bank owes him an obligation to honour that negotiable instrument.

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Definitions:

Calderas

Large, basin-like depressions resulting from the collapse of a volcano after a major eruption.

Magma Chambers

Large pools of molten rock located beneath the Earth's surface, where magma accumulates before it is erupted as lava during a volcanic eruption.

Reef

A structure formed in shallow waters by the growth and deposit of marine organisms such as corals and calcareous algae, providing diverse habitats for marine life.

Transform Fault

A type of fault where two tectonic plates slide past each other horizontally, often causing earthquakes.