Community Bank Receives a Check Drawn by Dennis

question 67

Multiple Choice

Community Bank receives a check drawn by Dennis. The check lacks a proper indorsement. Payment can be postponed without dishonor​

• A) ​indefinitely.
• B) ​under no circumstances.
• C) ​for thirty days.
• D) ​until the proper indorsement is obtained.

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Definitions:

Real Holding-period Return

The total return on an investment, accounting for inflation, over the period it is held, reflecting the true increase in purchasing power.

Real Rate of Return

The rate of profit or growth rate after adjusting for inflation.

Nominal Rate

The interest rate before adjustments for inflation, as opposed to the real rate, which is adjusted for inflation.

Inflation

How quickly the average price of goods and services elevates, lessening the power to purchase.