The Law of Demand

question 11

Multiple Choice

The law of demand

• A) always holds true.
• B) is the opposite of the law of supply.
• C) works only in large markets.
• D) is a general tendency.

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Definitions:

Drawee

The party that must obey an order. In the context of banking, the drawee is the bank that must pay the funds ordered by a customer’s check.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money to a specified person, which can be transferred by endorsement or delivery.

Dishonored

A term used to describe a financial instrument, such as a check or promissory note, that has been refused acceptance or payment.

Personal Defense

A liability defense that is not applicable to holders in due course.