Chapter 10 - Banking & Negotiable Instruments

The act of placing one's signature on an instrument, usually on the back, to transfer it to another:

• drawee

• endorsement

• negotiation

• schedule

A distinctive mark, characteristic, indicating identity:

• substitute

• signature

• assignment

• reconcile

The person who promises to pay money in a note:

• payee

• drawer

• holder

• maker

An order to a third party to pay money

• payee

• drawer

• draft

• drawee

Without conditions or limitations; absolute

• assignment

• reconcile

• unconditional

• substitute

The note is the most common form of commercial paper.

• True

• False

Banks are the debtors of their depositors.

• True

• False

Stop payment orders are good for six months, whether they be written or verbal.

• True

• False

Negotiable instrument is another term for commercial paper.

• True

• False

An indorsement is a signature on the face of the instrument.

• True

• False