Under the Most Modern Revision to Article 3,a Depositary Bank

question 28

True/False

Under the most modern revision to Article 3,a depositary bank cannot become a holder of a check that is deposited by a customer without an indorsement.

---

Definitions:

Market Risk Premium

The additional return an investor expects from holding a risky market portfolio instead of risk-free assets, critical for assessing investment risk.

Risk-Free Rate

The risk-free rate is the theoretical return on investment with no risk of financial loss, often represented by the yield on government securities.

Market Rate

The interest rate prevailing in the money market where instruments such as treasury bills and commercial paper are bought and sold.

Actual Return

The tangible profit or loss realized from an investment over a specific period of time.