Tomas Writes a Check for $1,000 Drawn on Unified Bank

question 42

Multiple Choice

Tomas writes a check for $1,000 drawn on Unified Bank and presents it to Viola. Viola presents the check for payment to Unified Bank, which dishonors it. The party most likely liable to Viola is​

• A) ​Tomas in a civil suit.
• B) ​Tomas in a criminal prosecution.
• C) ​Unity Bank in a civil suit.
• D) ​none of the choices.

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Definitions:

Real Interest Rate

The interest rate that has been adjusted to remove the effects of inflation, reflecting the real cost of borrowing.

Consumption

The action of using up a resource or goods, often referring to the rate at which consumers purchase and use products and services.

Real Rate of Interest

The rate of interest an investor expects to receive after adjusting for inflation, indicating the real cost of borrowing.

Nominal Rate

The stated interest rate on a loan or financial instrument, not adjusted for inflation.