Asked by Mariah Rodriguez on May 07, 2024
Verified
Which of the following is not a negotiable instrument?
A) A check.
B) A draft.
C) A certificate of deposit.
D) A stock certificate.
Negotiable Instrument
A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time.
Stock Certificate
A physical document that represents ownership of shares in a company.
Certificate of Deposit
A time-bound, interest-bearing financial product offered by banks, requiring the holder to leave a lump-sum deposit untouched until maturity.
- Identify the characteristics and differences between various types of negotiable instruments (checks, drafts, promissory notes, certificates of deposit).
Verified Answer
YG
Yulianna GarciaMay 10, 2024
Final Answer :
D
Explanation :
A stock certificate is not considered a negotiable instrument. It represents ownership in a company, but it is not a promise to pay a specific amount of money like a check, draft, or certificate of deposit.
Learning Objectives
- Identify the characteristics and differences between various types of negotiable instruments (checks, drafts, promissory notes, certificates of deposit).