Asked by Tommy Dorfman on Apr 28, 2024
Verified
Notes are orders to pay money,while drafts are promises to pay money.
Notes
Short-term financial instruments, typically in the form of a debt or loan, that require repayment of the principal and interest by the issuer.
Drafts
Preliminary versions of documents, or negotiable instruments drawn by one party (drawer) ordering another party (drawee) to pay a specified sum to a third party.
- Discern the differences between negotiable instruments like drafts, money orders, and checks.
Verified Answer
AJ
Aadesh JalotaMay 01, 2024
Final Answer :
False
Explanation :
Notes, specifically promissory notes, are promises to pay a certain amount of money under specified conditions, while drafts (including checks) are orders to a third party to pay a specified amount to the party presenting the draft.
Learning Objectives
- Discern the differences between negotiable instruments like drafts, money orders, and checks.