A Written Stop-Payment Order

question 16

Multiple Choice

A written stop-payment order:

• A) is valid for only 14 days and cannot be extended further even if written instructions are given to the bank by the customer.
• B) is valid for only three months unless confirmed in writing.
• C) is not valid for more than 48 hours.
• D) is valid for six months, and can be extended for another six months if written instructions are given by the customer.

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Definitions:

Future Value

A future specified date's asset or cash worth that is equivalent to a predetermined sum currently.

Present Value

The immediate value of a prospective sum of money or succession of payments, with a certain rate of return.

Compound Interest

Compound interest refers to the interest that is computed on both the initial principal amount and the interest that has been accumulated from previous periods for either a deposit or a loan.

Future Value

The value of an investment or payment at a specific future date, considering factors like interest rates or earnings.