Ch. 24 Law II quizizz review

As used in the definition of commercial paper, unconditional means that the legal effectiveness of the order or promise

• does not depend on other events.

• depends on what type of commercial paper it is.

• depends on the decision of a judge.

• depends on other events.

Most banks will honor a check without penalty, even if the account it is drawn on has insufficient funds to pay the check in its entirety.

• True

• False

A promissory note is an unconditional written promise by a person or persons to pay money according to the payee's order or to pay money to the bearer of the instrument.

• True

• False

_______________ are unconditional written orders or promises to pay money.

• Checks

• Money orders

• Commercial paper

• Promissory notes

People who vacation overseas should consider using _______________ to avoid having to carry a lot of cash or risk the chance that their personal checks will not be accepted.

• money orders

• teller's checks

• cashier's checks

• traveler's checks

A(n) _______________ check is a type of check that has been accepted by a bank before payment.

• draft

• overdraft

• certified

• traveler's

Written stop-payment orders are good for _______________ and lapse at the end of that time unless renewed.

• 7 days

• 14 days

• three months

• six months

An IOU is enforceable as commercial paper.

• True

• False

A _______________ is a person to whom commercial paper is made payable.

• creditor

• merchant

• holder in due course

• payee

When personal property is offered as security and is so identified on the face of the note, the paper is a(n)

• IOU.

• promissory note.

• collateral note.

• letter of credit.