When a Company Discounts an Interest-Bearing Note at a Bank

question 61

Multiple Choice

When a company discounts an interest-bearing note at a bank with recourse

• A)the company is assured payment at maturity.
• B)the company will receive the full amount of the note plus interest.
• C)the company has a contingent liability from the time the note is discounted until its maturity date.
• D)the bank assumes the credit risk on non-payment at the maturity date.

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Definitions:

Recessive Allele

A variant of a gene that must be inherited from both parents to be expressed in the offspring, in contrast to a dominant allele.

Carriers

Individuals who possess one copy of a mutated gene for a recessive genetic condition but do not exhibit symptoms of the condition themselves, though they can pass the gene to offspring.

Dominant Gene

A gene that is expressed in the phenotype even when only one copy is present in the genotype.

Genetic Characteristics

Traits and features that are determined by genes inherited from one's parents, affecting physical and sometimes behavioral aspects.