Jen Signs a Check "Pay to the Order of Key

question 7

Multiple Choice

Jen signs a check "pay to the order of Key" drawn on Jen's account in Little Bank to buy Key's car.If there are insufficient funds in Jen's account to cover the amount of the check,but the bank pays it,this creates

• A)a cashier's check.
• B)an overdraft.
• C)a stale check.
• D)a stop-payment order.

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Definitions:

Transitivity Property

is a mathematical concept applied in various fields, indicating that if relation A is related to B, and B is related to C, then A is necessarily related to C.

Adverse Selection

A scenario where information asymmetry results in high-risk individuals being more likely to engage in agreements, negatively affecting the other party.

Pairwise Voting

A voting system where choices are compared to each other one pair at a time, with preferences collected and the most preferred option determined through this comparison process.

Budget Shortage

A situation where a government's expenditures exceed its revenues, leading to a deficit.