Asked by Krystal Bandith on May 20, 2024
Verified
Which of the following types of commercial paper requires only a delivery of the instrument to the holder by the payee?
A) A bearer instrument
B) An unqualified instrument
C) An order instrument
D) An unconditional instrument
E) A certified instrument
Bearer Instrument
An instrument payable to cash or to whoever is in possession of the instrument.
Commercial Paper
An unsecured, short-term debt instrument issued by corporations, typically used for the financing of accounts receivable, inventories, and meeting short-term liabilities.
Delivery
The process of transporting goods from one place to another or the act of transferring the possession of something.
- Contrast the negotiation mechanisms and features of order versus bearer instruments.
Verified Answer
SO
Sophie OlivarezMay 26, 2024
Final Answer :
A
Explanation :
A bearer instrument is an instrument payable to cash or to whomever is in possession of the instrument.Bearer paper requires only a delivery of the instrument to the holder by the payee.
Learning Objectives
- Contrast the negotiation mechanisms and features of order versus bearer instruments.