Exam 19: Nature and Types of Negotiable Instruments

An instrument "payable to order" is payable to a specific person or to anyone that person designates.

The drawee of a check is always the

An instrument stating on its face, "Pay to Robert Stevens or bearer" is

A check dated later than the date it was originally made out is called a(n) ____________________ check.

The words order and bearer are words of negotiability.

A(n) ____________________ refers to a written document that can be used as a substitute for money.

There is no such thing as an oral note or check.

An "X" or a thumb print qualifies as a signature on a negotiable instrument.

It is not a requirement of a negotiable instrument that it

A promissory note states that the note is due one year from March 31, 2010 "with interest at the current rate." Is this instrument negotiable?

The words "value received" inserted on the face of a promissory note mean that ____________________ was given for the instrument.

Negotiable instruments can be used either as a substitute for money or as a means of extending credit.

One way to classify a negotiable instrument is either a demand instrument or a time instrument.

In regard to a promissory note, the person obligated to pay is the

An IOU for $500 is

A check made payable to "Cash" is

A certificate of deposit is actually a loan by a depositor to a bank.

An instrument is payable to ____________________ if it is to be paid to whomever has possession of it.

A negotiable instrument is

The signature on a negotiable instrument must