Asked by Kaleb Hulsey on May 20, 2024
Verified
The term ________ occurs when a holder presents an instrument in a timely and proper manner, but acceptance or payment is refused.
A) destroyed
B) dishonored
C) converted
D) rejected
E) refused
Dishonored
A term referring to a financial instrument, such as a check, that has been presented for payment but refused by the bank or payer.
- Recognize the implications and procedures when a negotiable instrument is dishonored.
Verified Answer
ND
Nicolas DryzunMay 21, 2024
Final Answer :
B
Explanation :
The term "dishonored" is used when an instrument (like a check or a promissory note) is presented for payment or acceptance in a proper manner but is refused by the party from whom acceptance or payment is sought.
Learning Objectives
- Recognize the implications and procedures when a negotiable instrument is dishonored.