Which of the Following on Appeal Was the Result in DIF

question 53

Multiple Choice

Which of the following on appeal was the result in DIF Bank Deutsche Investitions Finanz GMBH v. Fluormatic Corporation of America, the case in the text in which the defendant claimed that drafts were not negotiable because they were not payable in a "sum certain" because they were payable in German deutsche marks and did not specify an exchange rate?

• A) That the drafts were not negotiable because they were payable in German deutsche marks regardless of whether an exchange rate was specified.
• B) That the drafts were not negotiable because they were payable in German deutsche marks and an exchange rate was not specified.
• C) That the drafts were not negotiable because they were payable in German deutsche marks, did not specify an exchange rate, and were presented for payment after the exchange rate changed in excess of 5% after the drafts were issued.
• D) That the drafts were negotiable but only because they specified an exchange rate.
• E) That the drafts were negotiable regardless of whether or not they specified an exchange rate.

---

Definitions:

Payback Method

A capital budgeting technique that calculates the time needed to recoup the initial investment in a project.

Salvage Value

The estimated value that an asset will realize upon its sale at the end of its useful life.

Accrual Return

The return on investment that is recognized in financial statements before any cash changes hands.

Net Cash Inflows

The amount of cash received by a company from its various operational, investment, and financing activities, minus cash outflows, during a specific period.