All of the following except which one are warranted by the transferor of a negotiable instrument?
A) The instrument is not subject to a defense.
B) The transferor has no knowledge of a material alteration.
C) All signatures are authentic and authorized.
D) Transferor has no knowledge of insolvency proceedings instituted with respect to the maker or drawer.
B
You might also like to view...
As Andrew’s boss, you recently sent Andrew to a leadership training program because he is now in charge of a five-person team. Andrew returns from the training and tells you he wants to develop a Team Management style of behavior. Currently his behavior plots at 8, 3 on the Leadership Grid. What could you do to coach him effectively?
A. tell him to keep doing what he’s doing, he’s already there B. coach him to put more emphasis on the team’s productivity goals C. encourage him to host his subordinates at his house for dinner D. ask him to identify the best team members and reward their loyalty
Which of the following mathematical equations is used to compute the effective annual rate (EAR)?
A. EAR = (1/Periodic rate of interest)number of borrowing (interest) periods in one year- 1 B. EAR = (1 + Periodic rate of interest)number of borrowing (interest) periods in one year- 1 C. EAR = (1 - Periodic rate of interest)number of borrowing (interest) periods in one year- 1 D. EAR = (1 + Periodic rate of interest)number of borrowing (interest) periods in one year + 1 E. EAR = (1 - Periodic rate of interest)number of borrowing (interest) periods in one year + 1
Monitoring is one means by which creditors can control a borrower's incentive to expropriate wealth from the creditors
However, direct monitoring of a borrower's actions is more difficult in a public bond issue than in a private bond issue because of the: a. free-rider problem. b. requirement of registration with the SEC for a public bond issue. c. moral hazard problem. d. adverse selection problem.
Which of the following is a logistical function performed by intermediaries?
A. sorting B. negotiating C. financing D. risk taking E. all of these choices