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WorksheetsNegotiable Instruments
Total questions: 20
Worksheet time: 12mins
A negotiable instrument may be oral or written.
True
False
A written promise by one person to pay money to another person is called a(n)
draft
note
certificate of deposit
bill of lading
Certificates of deposit generally pay more _____ than regular savings accounts.
fees
interest
options
attention
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
Without conditions or limitations; absolute
assignment
reconcile
unconditional
substitute
Stop payment orders are good for six months, whether they be written or verbal.
True
False
To be negotiable, a promissory note or a certificate of deposit must contain a conditional promise to pay money.
True
False
The most common type of indorsement that automatically transfers order paper into bearer paper is a:
qualified indorsement
special indorsement
restrictive indorsement
blank indorsement
Indorsing the instrument with the words "For Deposit Only" is an example of this type of indorsement:
qualified
special
blank
restrictive
The law of negotiable instruments are governed by the:
UCC
FTC
FDIC
CDD
There are two basic kinds of negotiable instruments:
drafts and bonds
drafts and checks
notes and CDs
notes and drafts
A computerized system for transferring funds electronically rather than by writing checks:
EFT
endorsement
schedule
ATM
A negotiable instrument is all of the following except:
Cashier's Checks
Certificate of Deposit {CD}
Withdrawal Slip
Money Order
If an instrument contains Contradictory terms, which of the following is true?
Numbers always prevail over written terms
Typewritten terms prevail over any terms printed
Handwritten terms prevail over numerical or typewritten
Words supersede numbers
In order to negotiate this check, who must sign this item?
Sally Smith
BOTH Sally and Bob Smith
Bob Smith
In order to negotiate this item, who must sign this check?
Sally Smith
BOTH Sally and Bob
Bob Smith
Either Sally or Bob
Who can negotiate this item?
LaPorsha or Jacob
Jessica
Johnny Cash
No one-It must be returned to the person who made the check
The most common Indorsements you will see as a teller at FNB are
Restrictive
Special
Blank
Qualified
What is an Anomalous Indorsement?
An indorsement made by a person who is not the holder of the instrument
the act of writing on the back of a note, bill, or other written instrument
an indorsement that is made by the holder of an instrument, whether payable to an identified person or payable to the bearer, and that identifies a person to whom it makes the instrument payable
An indorsement limiting payment to a particular person or otherwise prohibiting further transfer or negotiation of the instrument
