CMCP M1CH3-Credit Instruments: Definitions, Classes, & Kinds

1. A classification of credit instruments whose acceptance is contingent on the issuer’s or maker’s credit status, length of payment time, amount involved, and some other aspects. 

• General Acceptability

• Universal Acceptability

• Limited Acceptability

• Restricted Acceptability

1. It is a request from one person to another for payments of a certain amount at a future date or on demand.

• Order to pay

• Oath to pay

• Promise to pay

• System to pay

1. It depicts the usage of credit in a short-term and trading context.

• 1. Investments Credit Instruments

• Commercial Credit Instruments

• Credit Money

• Money Order

1. It is the exchange transactions which are facilitated by credit instruments. Farmers, manufacturers, merchants all employ the appropriate credit instrument to explain their amount of products. 

• 1. Feature of Credit Instruments

• 1. Function of Credit Instruments

• 1. Type of Credit Instruments

• 1. Classification of Credit Instruments

Legal agreements which promise to pay a specific sum to a person or party at a specified time or upon demand. It serves as a guarantee of the payment or repayment the assignee anticipates. 

• 1. Negotiable Instruments

• Non-negotiable Instruments

• 1. Investment Credit Instruments

• Commercial Credit Instruments

1. He argues that credit money manifests in several forms. The aforementioned entities are token coin, representative token coin, fiat money, central bank notes, and demand deposits.

• Zaccarias Ronquillo

• Zacharrias Ronquillo

• Zacarias Ronquillo

• Zackary Ronquillo

1. Which of the following is one of the features of a credit instrument?

• 1. It demonstrates the level of risk that the debtor faces while trying to collect the loan.

• 1. It is a claim enforcement that requires written documentation.

• 1. It is a record in writing that demonstrates the existence of a debtor’s obligation or a creditor’s claim. 

• 1.  It is a credit instrument to reduce disagreements between the parties to the contract.

When creating a promissory note, a note must be?

• 1. It must be payable to the drawer and drawee.

• 1. It must be payable on demand or at an unfixed and undetermined time. 

• 1. It must be signed by the maker or drawer.

• 1. It must be in printed

1. It is a type of bond that does not have a specified interest rate.

• 1. Zero Voucher Bond

• 1. Zero Coupon Bond

• 1. Zero Coupon Convertible Bond

• 1. Variable Rate Bond

1. What do you call the detail in a bond certificate that contains the day the principal of the bond is paid to the bondholder?

• 1. Issue Date

• 1. Conditions

• 1. Bond Maturity Date

• 1. Face Value