Negotiable Instruments Assessment I

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?

• Two

• Three

• Four

• Five

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

• Check

• Bill of exchange

• Draft

• Promissory note

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

• Check

• Bill of exchange

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