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Questions and Answers
What is a negotiable instrument?
What is a negotiable instrument?
- A verbal agreement to pay someone in the future
- An informal note promising to pay someone back
- A signed document promising payment to a specified person or assignee (correct)
- An electronic transfer of funds
What is the role of the payee in a negotiable instrument?
What is the role of the payee in a negotiable instrument?
- The person responsible for transferring the instrument
- The person receiving the payment (correct)
- The witness to the signing of the document
- The person making the payment
Which of the following is an example of a negotiable instrument?
Which of the following is an example of a negotiable instrument?
- Online banking transfer
- Certificate of deposit (CD) (correct)
- Cash payment
- Venmo payment
What is the function of a personal cheque as a negotiable instrument?
What is the function of a personal cheque as a negotiable instrument?
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Why are negotiable instruments considered transferable and assignable?
Why are negotiable instruments considered transferable and assignable?
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