Which of the Following Indorsements Is a Restrictive Indorsement

question 90

Multiple Choice

Which of the following indorsements is a restrictive indorsement?

• A)"Pay to Jack Black,Mel Gibbs"
• B)"Mel Gibbs"
• C)"Pay to Jack Black in Trust for Mel Gibbs"
• D)"Pay to the Order of Jack Black,Mel Gibbs"

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Definitions:

Bond Value

This refers to the present value of a bond's future interest payments plus the face value of the bond when it matures, essentially the price at which a bond is traded.

Credit Default Swaps

Financial derivative contracts that transfer the credit exposure of fixed income products between parties, used as a form of insurance against default on loans or bonds.

Interest Rate Risk

Interest rate risk is the potential for investment losses due to fluctuations in interest rates, affecting the value of fixed-income securities inversely.

Protection Sellers

Protection sellers in a financial context typically engage in credit derivatives markets, selling credit protection to hedge against the risk of default on underlying credit assets.