B.Law Ch 29-30

What is another name for a draft?

• demand instrument

• bill of exchange

• promissory note

• certificate of deposit

What kind of instrument is dated later than the date of issuance?

• antedated

• postdated

What kind of paper is is collectible by the party in possession of it?

• order

• negotiable

• bearable

• bill of exchange

Payable at a definite time means that the commercial paper is written payable on or before an identified calendar date.

• True

• False

When commercial paper is made payable to the order of a specific payee, it is called _____ paper.

• negotiable

• bearable

• order

• antedated

An unconditional written order by one person that directs another person to pay money to a third party is called a(n)

• CD

• draft

• IOU

• note

An indorsement such as "For Deposit Only" is

• a blank indorsement

• a qualified indorsement

• a restrictive indorsement

• a special indorsement

Judy just opened a checking account. Which statement is true regarding the checks in Trudy's checking account?

• They contain an unconditional promise to pay

• They are the most common form of commercial paper

• They are a type of promissory note

• All of the above are true

The most common type of indorsement that automatically transfers order paper into bearer paper is

• blank indorsement

• qualified indorsement

• restrictive indorsement

• special indorsement

A draft that is due and payable at the time it is presented to the drawee by the person holding it is a

• demand draft

• promissory note

• sight draft

• time draft