Question 1

Which of the following is a promise made by a bank to pay a payee a certain amount of money at a future time?

Accepted Answer

A)   A note
B)   A draft
C)   A novation
D)   A check
E)   A certificate of depositF) All of the above
G) D) and E)

Question 2

For an instrument to be negotiable, the instrument must indicate that it was created for the purpose of being ____.

Accepted Answer

A)   Transferred
B)   Paid
C)   Maintained
D)   Banked
E)   RetainedF) C) and D)
G) All of the above

Question 3

With a[n] ______ instrument, the payee or subsequent holder can demand actual payment at any time.

Accepted Answer

A)   Time
B)   Demand
C)   Recourse
D)   Nonrecourse
E)   ImmediateF) All of the above
G) D) and E)

Question 4

If an instrument fails to qualify as a negotiable instrument, that means that the instrument fails to be an enforceable contract.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a draft with respect to which the drawer and drawee are the same bank or branches of the same bank?

Accepted Answer

A)   Cashier's check
B)   Traveler's check
C)   Certified check
D)   Check certificate
E)   Approved draftF) B) and E)
G) C) and D)

Question 6

Which of the following is false regarding the UCC's signature requirement for a negotiable instrument?

Accepted Answer

A)   The signature may be an assumed name.
B)   A signature may be made by means of a device or machine.
C)   A signature may be made manually.
D)   The signature of an agent on behalf of the principal binds the principal and satisfies the signature requirement.
E)   The UCC prohibits an "X" from being used as a signature.F) None of the above
G) B) and C)

Exam 26: Negotiable Instruments: Negotiability and Transferability

If an instrument fails to qualify as a negotiable instrument, that means that the instrument fails to be an enforceable contract.

Correct Answer
verified

Which of the following is a promise made by a bank to pay a payee a certain amount of money at a future time?

Correct Answer
verified

For an instrument to be negotiable, the instrument must indicate that it was created for the purpose of being ____.

Correct Answer
verified

Which of the following is false regarding the UCC's signature requirement for a negotiable instrument?

Correct Answer
verified

With a[n] ______ instrument, the payee or subsequent holder can demand actual payment at any time.

Correct Answer
verified

Which of the following is a draft with respect to which the drawer and drawee are the same bank or branches of the same bank?

Correct Answer
verified

Exam 26: Negotiable Instruments: Negotiability and Transferability

If an instrument fails to qualify as a negotiable instrument, that means that the instrument fails to be an enforceable contract.

Correct AnswerverifiedShow Answer

Which of the following is a promise made by a bank to pay a payee a certain amount of money at a future time?

Correct AnswerverifiedShow Answer

For an instrument to be negotiable, the instrument must indicate that it was created for the purpose of being ____.

Correct AnswerverifiedShow Answer

Which of the following is false regarding the UCC's signature requirement for a negotiable instrument?

Correct AnswerverifiedShow Answer

With a[n] ______ instrument, the payee or subsequent holder can demand actual payment at any time.

Correct AnswerverifiedShow Answer

Which of the following is a draft with respect to which the drawer and drawee are the same bank or branches of the same bank?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified