Which of the Following Would Constitute the Creation of an Assignment

question 52

Multiple Choice

Which of the following would constitute the creation of an assignment?

• A) the transfer is of nonnegotiable instruments
• B) a transfer qualifies as a negotiation under Article 3
• C) a transferee qualifies as a holder in due course
• D) the indorsement falls under the shelter principle

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Definitions:

Present Value Index

A financial metric used to calculate the present value of all cash inflows and outflows associated with an investment, compared to its initial cost.

Net Present Value

A financial metric that calculates the value of a project or investment by discounting all expected future cash flows to the present using a particular rate of return.

Net Present Value

The variance between the net present value of incoming cash and outgoing cash within a set timeframe.

Net Cash Flows

The amount of cash generated or used by a business during a given period, calculated as cash received minus cash spent.