Enabling JavaScript for Website and App Functionality
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Questions and Answers

What does it mean when a negotiable instrument is payable to 'bearer'?

  • It can only be cashed by the original issuer
  • It can only be collected by the bank
  • It can be paid to anyone who holds it (correct)
  • It can only be endorsed by an attorney

    • What is a key characteristic of negotiable instruments?

  • Must be in writing (correct)
  • Must be orally agreed upon
  • Can only be transferred by delivery
  • Must contain a conditional promise to pay

    • Why are negotiable instruments widely accepted in commercial transactions?

  • Because they require oral agreements
  • Due to their fixed payment amounts
  • Because they can be transferred easily by delivery (correct)
  • Due to being non-transferable

    • Who becomes the holder in due course when a negotiable instrument is transferred?

    <p>The bearer</p> Signup and view all the answers

    Which type of document guarantees the transfer of a specific amount of money?

    <p>Negotiable instruments</p> Signup and view all the answers

    What type of promise must a negotiable instrument contain?

    <p>Unconditional promise</p> Signup and view all the answers

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