Which of the Following Is Most True Regarding Checks Whose

question 30

Multiple Choice

Which of the following is most true regarding checks whose amount has been altered?

• A) The bank may not pay such checks as altered in all cases.
• B) The bank may pay such checks as altered where the alteration is due to the customer's negligence and the alteration is not obvious.
• C) The bank must pay such checks as originally drawn.
• D) The bank cannot ever pay such checks.

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Definitions:

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors, using fewer resources.

Comparative Advantage

The capacity for a person, company, or nation to generate a product or offer a service at a lesser opportunity cost compared to its rivals.

Opportunity Cost

The expense incurred by not choosing the second-best option available when a decision is made or an action is taken.

Pure Capitalism

An economic system characterized by private ownership of the means of production and where investments, distribution, income, production, and prices are determined by the market.