Dan Applies to Borrow $1,000 at 6 Percent Interest from Eagle

question 47

Multiple Choice

Dan applies to borrow $1,000 at 6 percent interest from Eagle Loan Company and signs a note for the amount. Without Dan's authorization, Eagle changes the rate on the note to 9 percent and attaches a copy of his application to the note. Material alteration of the note occurred

• A) only when Eagle attached a copy of Dan's application to the note.
• B) only when Eagle changed the interest rate on the note.
• C) under none of these circumstances.
• D) when Eagle changed the rate and attached the application.

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Definitions:

Lateral Inhibition

A process in neural networks of the brain where an excited neuron reduces the activity of its neighbors, sharpening sensory perceptions and contrasts.

Acuity

The sharpness or keenness of thought, vision, or hearing.

Duplex Theory

A concept in various fields, but could refer to theories that propose two fundamental components or processes that work simultaneously to explain a phenomenon.

Night Vision

The ability to see in low-light conditions, achieved through the adaptation of the eyes and various technologies designed to enhance human vision in the dark.