Which of the Following Is True of a Collecting Bank

question 14

Multiple Choice

Which of the following is true of a collecting bank?

• A)A collecting bank is an agent of the owner of an item until settlement becomes final.
• B)The agency relationship between a collecting bank and the owner of an item, once settled, changes to a debtor-creditor relationship.
• C)A collecting bank may be a sub-agent of the owner until settlement becomes final.
• D)All of the above.
• E)None of the above.

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Definitions:

Tragedy of the Commons

A situation in which individual users, acting independently according to their self-interest, behave contrary to the common good of all users by depleting or spoiling shared resources.

Grazing Permits

Licenses issued by government or property owners allowing livestock to graze on land.

Internalize the Externality

The process whereby parties take into account the external costs or benefits of their actions, often through regulatory or market-based mechanisms.

Tragedy of the Commons

A situation in a shared-resource system where individual users acting independently according to their own self-interest behave contrary to the common good of all users by depleting or spoiling that resource.