A Bank That Fails to Carry Out a Payment Order

question 2

Multiple Choice

A bank that fails to carry out a payment order is usually liable for:

• A) interest loss and expenses.
• B) loss sustained by the originator.
• C) consequential damages because the payment was not made.
• D) all of the above.

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Definitions:

Traditional CVP Analysis

This refers to the Cost-Volume-Profit Analysis that helps in determining how changes in costs and volume affect a company's operating income and net income.

Sensitivity Analysis

A method for assessing the impact of varying levels of an independent variable on a specific dependent variable, assuming certain conditions.

Cost Structure

The composition of a company’s costs, including the ratio of fixed to variable costs and how these affect overall profitability.

Fixed Costs

Regardless of production or sales volumes, certain costs, like rent, salaries, and insurance, do not vary.