Asked by Devante Starks on Jun 04, 2024
Verified
To determine the value of an instrument, it is necessary to know when the maker, drawer, or acceptor is required to pay.
Instrument Value
The actual worth or significance of a financial document, like a stock or bond, in transactions.
Maker
The party in a financial transaction who creates or signs a promissory note, thereby agreeing to pay the note's value to a specified party.
Drawer
The person who writes or signs a bill of exchange, such as a check, thus creating a financial obligation.
- Expound on the importance of set and ascertainable quantities in the context of negotiable instruments.
Verified Answer
AA
Antonio Alfonso Noguera MarquezJun 08, 2024
Final Answer :
True
Explanation :
The value of an instrument often depends on the payment terms, including the timing of when the maker, drawer, or acceptor is required to pay, as this affects the instrument's risk and return profile.
Learning Objectives
- Expound on the importance of set and ascertainable quantities in the context of negotiable instruments.