Negotiable Instruments Quiz
5 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

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?

  • 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?

  • Online banking transfer
  • Certificate of deposit (CD) (correct)
  • Cash payment
  • Venmo payment

    • What is the function of a personal cheque as a negotiable instrument?

    <p>It serves as a draft, payable by the payer’s financial institution once received</p> Signup and view all the answers

    Why are negotiable instruments considered transferable and assignable?

    <p>Because they can be traded on a secondary market</p> Signup and view all the answers

    More Like This

    Negotiable Instruments and Liability Quiz
    36 questions

    Negotiable Instruments and Liability Quiz

    FreshestIllumination avatar
    FreshestIllumination
    Negotiable Instruments Quiz
    7 questions

    Formal Contracts: Negotiable Instruments Quiz

    SweetFantasy avatar
    SweetFantasy
    Negotiable Instruments Quiz
    5 questions

    Negotiable Instruments Quiz

    ManageableMountain avatar
    ManageableMountain
    Negotiable Instruments Liability Quiz
    5 questions

    Negotiable Instruments Liability Quiz

    UnwaveringPrehnite avatar
    UnwaveringPrehnite
    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser