Which of the Following "Signatures" Would Be Insufficient to Qualify

question 4

Multiple Choice

Which of the following "signatures" would be insufficient to qualify an instrument as negotiable?

• A)The maker wrote her name on the instrument with the intention of validating it.
• B)The drawer drew a symbol on the instrument with the intention of validating it.
• C)The maker uses a rubber-stamped signature on the instrument with the intention of validating it.
• D)A drawer,who cannot write her name,marked an "X" on the instrument outside of the presence of a witness,with the intention of validating it.

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Definitions:

Effective Annual Rate

The interest rate on an investment or loan that is compounded annually, indicating the actual annual return taking into effect compounding over the year.

Real Return

The yield on an investment once inflation adjustments have been made.

Nominal Return

The amount of profit or loss on an investment before adjusting for factors like inflation, representing the raw financial outcome.

Inflation

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