Under the Recent Amendments to Article 4,postdated Checks

question 58

Multiple Choice

Under the recent amendments to Article 4,postdated checks:

• A)are now invalid and create no obligation to pay on the drawee bank's part.
• B)are not properly payable by the drawee bank until the date on the check.
• C)may be paid by the drawee bank before the date on the check unless the customer has given notice to the contrary.
• D)may be paid by the drawee bank unless the customer gives notice of the postdating in a way that at least partially describes the check.

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Definitions:

Profitability Index

A financial tool used to measure the relative profitability of an investment, calculated by dividing the present value of future cash flows by the initial investment cost.

Arbitrary Value

A value that is decided without a specific standard or measure, often based on personal judgment or preference.

Annual Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity, over the course of a year.

Required Rate

typically refers to the minimum expected rate of return on an investment, necessary for it to be considered a viable option.