Bob Receives a Check from Chris

question 5

Multiple Choice

Bob receives a check from Chris.Without Bob's knowledge,Dan indorses it in his own name and deposits it in his account at Elm City Bank.In Bob's subsequent suit against the bank for the money,the court will most likely rule in favor of

• A)Bob,because Dan's signature is not authorized.
• B)Bob,because Elm City Bank is not a holder in due course.
• C)Elm City Bank,because Dan's signature is not authorized.
• D)Elm City Bank,because it is a holder in due course.

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Definitions:

Giffin Good

A type of good for which demand increases as its price increases, contrary to the typical law of demand.

Income Effect

The influence of income adjustments on the demand for goods or services, whether in an individual's finances or within an economy.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading to consumers replacing more expensive items with less costly alternatives.

Diminishing Marginal Utility

The principle that as more of a good or service is consumed, the additional satisfaction or utility gained from consuming an additional unit declines.