Consumers Have the Responsibility to Examine Periodic Statements Provided by Their

question 19

Multiple Choice

Consumers have the responsibility to examine periodic statements provided by their financial institutions. If a loss would not have occurred but for the failure of a consumer to report within __________ of the transmittal of the statement any unauthorized transfer, the loss is borne by the consumer.

• A) fourteen (14) days
• B) thirty (30) days
• C) sixty (60) days
• D) six (6) months

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Definitions:

Payback Period

The amount of time it takes for an investment to generate an amount of income or cash equivalent to the cost of the investment.

Investment

The allocation of resources, such as capital, time, and effort, in something to earn a return or achieve a goal.

Present Value

The present worth of a future amount of money or series of cash flows when discounted at a certain rate of return.

Salvage Received

Salvage received refers to the amount gained or recovered from the sale or disposal of an asset after it is no longer useful or at the end of its useful life.