Dan Writes a Check to Emma on His Account at First

question 63

Multiple Choice

Dan writes a check to Emma on his account at First State Bank. The bank dishonors the check even though Dan has sufficient funds in his ac?count. The bank is

• A) liable to Dan only.
• B) liable to Dan and Emma.
• C) liable to Emma only.
• D) not liable to Dan or Emma.

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Definitions:

Money

A medium of exchange that is widely accepted in payment for goods and services and in settlement of debts.

Annually Compounded

Refers to the process of calculating and adding interest to a principal sum once per year.

Maturity Values

The amount payable to the holder of a financial instrument at its maturity date, often the principal plus interest.

Investment

An asset or item acquired with the goal of generating income or appreciation.