Fact Pattern 17-2 Lisa Writes a Check on Her Account at Metro Bank

question 29

Multiple Choice

Fact Pattern 17-2
Lisa writes a check on her account at Metro Bank to Niklas to pay a debt. Niklas negotiates the check by indorsement to O'Leary, who presents it for payment to Prime Bank.
-Refer to Fact Pattern 17-2.If Prime Bank dishonors the check, O'Leary can obtain payment from Niklas​

• A) ​if O'Leary timely notifies Niklas.
• B) ​only if Lisa refuses to pay the check.
• C) ​only to the extent that Lisa overpaid her debt to Niklas.
• D) ​under no circumstances.

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Definitions:

Bond Prices

The trading price of bonds in the market, which can vary based on interest rates, the bond's credit quality, and other factors, inversely related to changes in interest rates.

Interest Rates

The amount charged by lenders to borrowers for the use of assets, usually expressed as a percentage of the principal.

Limited Partnership

A partnership in which limited partners’ liabilities, investment returns, and control are limited, while general partners have unlimited liability and control.

General Partner

A member of a partnership who has unlimited liability and is actively involved in the management of the business.