Asked by Olivia Martin on May 16, 2024
Verified
Belinda asks Jordan to explain what an example of a negotiable instrument is for their upcoming test. Which of the following should Jordan tell Belinda are examples of negotiable instruments?
A) Checks only
B) Drafts and checks only
C) Promissory notes only
D) Promissory notes and certificates of deposits, but not checks or drafts
E) Checks, drafts, certificates of deposit, and promissory notes
Negotiable Instruments
Financial instruments that are transferable from one party to another, typically including checks, promissory notes, and bills of exchange.
Checks
Checks are written, dated, and signed instruments that direct a bank to pay a specific amount of money from the writer's account to the person or entity in whose name the check has been issued.
Drafts
Written orders by one party (the drawer) to another (the drawee) to pay a specific amount of money to a third party (the payee) on demand or at a specified future date.
- Recognize the classifications of negotiable instruments specified within the Uniform Commercial Code (UCC).
Verified Answer
Learning Objectives
- Recognize the classifications of negotiable instruments specified within the Uniform Commercial Code (UCC).
Related questions
Analynd Issues a Note to Baliee Indicating a Specified Date ...
Which of the Following Is a Draft with Respect to ...
Article 3 of the UCC Recognizes Three Types of Negotiable ...
Vivian Purchases a Certificate of Deposit for $10,000 at Right ...
A Written Document Containing the Signature of the Creator That ...