Anyone Who Presents a Check for Payment Makes Certain Warranties

question 26

Multiple Choice

Anyone who presents a check for payment makes certain warranties.Which of the following is NOT one of those warranties?

• A)that he or she is a holder
• B)that the check has not been altered
• C)that the drawee is a solvent institution
• D)that all signatures are authentic

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Definitions:

Money Supply

The collective value of all cash, bank deposits, and liquid financial resources existing in an economy at a particular time.

Secondary Reserves

Assets that are highly liquid but not as liquid as primary reserves; they can quickly be converted into cash or other assets to meet financial obligations.

Treasury Bills

Short-term government securities issued at a discount from the face value and mature in a year or less, used to raise funds and manage the national debt.

Corporate Stock

Share in a corporation. The stockholders own the corporation.