Negotiable Instruments iCev Business Law

Which of the following is NOT a function of negotiable instruments?

• Substitute for money

• Credit device

• Conditional contract replacement

• Recordkeeping device

How many parties are normally involved when using a check?

• 2

• 3

• 4

• 5

Which of the following negotiable instruments CANNOT be drawn on copies?

• Check

• Bill of Exchange

• Promissory Note

• Draft

Which of the following is a written promise made by one person to pay a fixed sum to another person on demand or at a specific time in the future?

• Draft

• Promissory Note

• Bill of Exchange

• Draft

Which of the following is NOT a requirement for negotiability?

• Must be written

• Must be signed

• Must contain a condition to payment

• Must be for an exact amount of money

Which of the following is the act of a person who is the holder of a negotiable instrument signing his or her name on the instrument, thereby transferring title or ownership?

• Bearer

• Discharge

• Defense

• Endorsement

Which of the following refers to the termination of the instrument and liability of the parties?

• Discharge

• Negotiation

• Defense

• Endorsement

Which of the following is NOT an example of material alteration?

• Changing the date on a check

• Editing the name of the payee

• Tearing a check out of a check book

• Altering the amount listed on the check

Which of the following types of discharge involves the holder of an instrument at or after its maturity absolutely and unconditionally renouncing in writing and giving up their right against all the parties to the instrument?

• By payment in due course

• By express waiver

• By cancellation

• By material alteration

Which of the following is an example of a real defense?

• Failure of a condition

• Prior payment

• Void contract

• Unauthorized completion