If a Bank Pays a Check After It Is Given

question 13

Multiple Choice

If a bank pays a check after it is given a stop-payment order:

• A)it acquires all the rights of its customer against the person to whom it originally made payment.
• B)it acquires no rights of the person to whom it made payment.
• C)it acquires partial rights of its customer against the person to whom it originally made payment.
• D)the customer to whom payment was made retains all the rights.

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Definitions:

Without Government

A scenario that describes a situation or theoretical condition where governmental institutions and interventions do not exist or are absent.

Pollution

The contamination of air, water, or soil by substances that are harmful to living organisms.

Pigouvian Tax

A tax imposed on any market activity that generates negative externalities, intended to correct the market outcome by internalizing the costs of the externality.

Marginal Social Cost

The complete expense incurred by society to produce an extra unit of a good or service, encompassing both individual costs and external impacts.