Which of the Following Is True in the Event an Instrument

question 28

Multiple Choice

Which of the following is true in the event an instrument contains more than one endorsement?

• A)Each endorser is liable for the full amount to the subsequent endorser or to the holder.
• B)Each endorser is liable for the full amount to the subsequent endorser,but only the last endorser is liable to any holder.
• C)Each endorser is liable to the holder in proportion to the number of endorsers that exist.
• D)The last endorser is liable to the holder,whereas subsequent endorsers are not liable to the holder,but are responsible for reimbursing the last endorser in proportion to the number of endorsers that exist.
• E)Only the last endorser is liable to the holder and no prior endorsers are liable to a subsequent endorser.

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Definitions:

Capital

Resources made and used by people to produce and distribute goods and services; includes tools, machinery, and buildings.

Interest Rates

Charges applied on borrowed money or earned through deposits, varying according to the type, term, and risk associated with the financial product.

Present Value

The present value of a future sum of money or series of cash flows, discounted at a certain rate of return.

Expected Costs

The anticipated expenses associated with the production of goods or services or the undertaking of an activity, based on historical data, trends, and analysis.