In Which Case Would the Holder in Due Course Not

question 5

Multiple Choice

In which case would the holder in due course not receive payment?

• A)Nineteen-year-old Dylan signs a promissory note to pay $500 to Alice and hands her the note.
• B)Ricardo forges Amberly's name to a promissory note and sells it to Divine.
• C)Yoko borrows money from Carole and signs a promissory note to repay the amount with interest.
• D)All of these are correct.

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Definitions:

Treasury Bills

Short-term government securities with maturities ranging from a few days to 52 weeks, issued at a discount to face value.

Inflation

A measure of the rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Efficient Capital Market

A market where all relevant information is fully and immediately reflected in securities prices, ensuring that securities are always fairly priced.

Security Prices

The market value or price at which securities, such as stocks or bonds, are bought and sold.