Which of the Following Is True Regarding Liability on Negotiable

question 28

Multiple Choice

Which of the following is true regarding liability on negotiable instruments?

• A) Issuers and acceptors are primarily liable for a negotiable instrument, while drawers and endorsers are secondarily liable.
• B) Drawers and endorsers are primarily liable, while issuers and acceptors are secondarily liable.
• C) Issuers and drawers are primarily liable, while acceptors and endorsers are secondarily liable.
• D) Acceptors and endorsers are primarily liable, while issuers and drawers are secondarily liable.
• E) Drawers are primarily liable, while issuers, acceptors, and endorsers are secondarily liable.

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Definitions:

Money Supply

The aggregate monetary assets within an economy at a certain instant, including cash, coins, and the money in checking and savings accounts.

Bank Capital

The resources a bank’s owners have put into the institution

Total Assets

The sum of all monetary values of everything a company owns, including cash, investments, property, and other resources, reflected on its balance sheet.

Reserve Requirements

The fraction of deposits that banks are required by law to keep on hand or with the central bank as a safeguard against bank runs.