Asked by Preston Tribble on Jun 23, 2024
Verified
A paper reads: To: Empire Bank. Five days after the next full moon, pay to Nathan Montrose or anyone named by him the sum of $500. Signed: "Monica Traymoor," August 15, 2020. Most correctly, this is
A) a bill of exchange.
B) a negotiable instrument.
C) a promissory note.
D) a banker's acceptance.
E) a bill of exchange and a negotiable instrument.
Negotiable Instrument
A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the name of the payer and payee.
Promissory Note
A financial instrument containing a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.
Banker's Acceptance
A short-term debt instrument issued by a company that is guaranteed by a commercial bank.
- Understand the requirements for a document to be considered a negotiable instrument.
Verified Answer
KG
Kimberly GarciaJun 23, 2024
Final Answer :
E
Explanation :
This document is a bill of exchange because it is an order made by one person to another to pay money to a third person. It is also a negotiable instrument, which is a document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.
Learning Objectives
- Understand the requirements for a document to be considered a negotiable instrument.