negotiable instruments
To be negotiable, an instrument must contain a promise or order to pay a _____________ amount of money A. conditional B. fixed C. unconditional D. appreciating
B.
A ____________________ is an unconditional written promise by one party to pay money to another party A. sight draft B. time draft C. promissory note D. check
C.
The UCC defines ______________ as a medium of exchange authorized or adopted by a domestic or foreign govt. as part of its currency A. promisory note B. check C money D. draft
C.
The party to whom the promise to pay is made is the A. maker B. drawer C. payee D. drawee
C.
Promissory notes can be payable at either _______ or ______ A. an arbitrator- ruled time; on capitulation B. a general time; on inquiry C. a court ordered time; on confession D. a specific time; on demand
D
A certificate of ______________ is a special form of promisery note that is created when a depositor deposits money at a financial institution in exchange for the institution's promise to pay back the money, with agreed-upon interest, upon the expiration of a set time [period agreed on by the parties A. Promissory note B. insurance C. collateral D. deposit
D.
A/an _________________ clause allows the payee or holder to accelerate payment of the principle amount of an instrument, plus accrued interest, upon the happening of an event (such as default) A. due-on-sale B. default C. bankruptcy D. acceleration
D.
to be a negotiable instrument under the UCC (3-104) a writing must contain either a/an ___________________ promise or order to pay A. qualified B. conditional C. fixed D. unconditional
D.
A bank customer who has a checking account and writes a check is the drawee T/F
False
A check is a type of promissory note T/F
False
A draft is a 2 party instrument T/F
False
A time draft is payable on sight True/False
False
Negotiable instruments are covered in UCCC Article 4 T/F
False
The UCC recognizes 2 types of negotiable instruments, drafts and checks T/F
False
Examples of negotiable instruments include checks and promissory notes. T/F
True
Negotiable instruments are also referred to as "commercial paper" T/F
True
Negotiable instruments can serve as substitutes for money and act as credit devices T/F
True
