negotiable instrument
What is a negotiable instrument?
A document guaranteeing the payment of a specific amount of money
Which of the following is NOT a type of negotiable instrument?
Receipt
What is the purpose of a negotiable instrument?
To guarantee the payment of a debt
Which party makes a promise to pay in a promissory note?
Maker
What does the term 'endorsement' refer to in a negotiable instrument?
The act of transferring the instrument to another party
Which of the following is a characteristic of a negotiable instrument?
Requires a signature
In which situation would a negotiable instrument be dishonored?
When there are insufficient funds to honor it
Which of the following is an example of a negotiable instrument?
A cashier's check
What is the role of the payee in a negotiable instrument?
The person to whom the payment is to be made
What is the significance of 'consideration' in a negotiable instrument?
The proof of payment for the instrument