A negotiable instrument can extinguish an obligation.

A payee maybe considered as a person secondarily liable.

An instrument payable upon contingency is not negotiable.

A negotiable instrument is not a legal tender.

A holder is both an indorser and possessor.

Negotiable instruments are provisionally accepted in place of actual cash.

The oldest negotiable instrument was one made payable to order approximately 2100 BC.

The bill of exchange was the first recognized negotiable instrument by early common law courts.

Generally, the date in a bill or note is not necessary

The last indorser and possessor is a holder.

In promissory note, the maker is actually the debtor.

In ordinary obligations, the payee is considered as the debtor.

A crossed check may not be encashed but only deposited in the bank.

In ordinary obligations, the maker is the debtor.

n Europe, negotiable instruments were already in use in the 15th and 16th century

The promissory note was the first recognized negotiable instrument by the early common law courts.

Negotiable instrument is a legal tender.

Negotiable instrument is not a contract.

A payee can be an indorser.

A negotiable instrument is not a substitute for money.

A negotiable instrument can increase credit circulation.

A bearer instrument can be negotiated by proper indorsement and delivery.

A holder of a negotiable instrument is only an indorsee.

An order instrument could not be converted into bearer instrument.

A check may be payable at a fixed future time.

The principal parties of a check are maker, payee and drawee bank.

The principal parties of a promissory note are maker and payee.

The payee is a person primarily liable in a negotiable instrument.

The payee may choose to hold the instrument until maturity date.

The payee may be considered as a party secondarily liable.

A certificate of deposit is not a form of promissory note.

Bonds are more elaborate promissory notes.

The bond issuer is the one who floats the bond.

The trustee is the third party to whom the issuing company has mortgaged corporate property as a security.

Debenture bonds are secured by specific property or asset of the issuing company.

Mortgage bonds are secured by a mortgage on corporate property.

Trade acceptance is not a form of bill of exchange.

Bank acceptance bill of exchange is a draft drawn and accepted by a bank.

A check is a form of promissory note drawn on a bank and always payable on demand.

The principal parties of a check are drawer and payee only.

The relationship between the bank and the depositor is that of a debtor and a creditor.

A cashier’s check is a check drawn by a bank upon itself and payable to third person.

A crossed check may be negotiated only once.

Presentment for acceptance is necessary in a promissory note.

When a bill of exchange is payable at a fixed period after sight, presentment for acceptance is not necessary.

Presentment for acceptance may not be necessary in a bill of exchange.

In a check, presentment for payment must be made within a reasonable time.

In ordinary obligations, the drawer is the creditor.

Presentment for acceptance applies if the place of payment is different from the domicile of the drawee.

When the drawee refuses to accept the bill of exchange, he is said to have dishonored the bill by non-acceptance.

Presentment for payment applies only to a bill of exchange.

Dishonor by non-payment is applicable to promissory note and bill of exchange.

In promissory note, the parties secondarily liable are the payee and all the indorsers prior to the holder.

Payment in due course by or on behalf of the principal party is considered as discharge.

Intentional cancellation of the instrument by the holder is not considered as discharge.

Merger and confusion of an instrument is not considered as discharge.

The indorsee is considered as a party secondarily liable.

The drawer is a party secondarily liable.

The maker issues the bill of exchange.

The payee issues the promissory note.

The drawee issues the bill of exchange.

The drawer issues the bill of exchange

The maker or the drawer is the one who issues a negotiable instrument.

In a check, a payee is the creditor of the drawer to whom the bank must pay the check

In a check, the drawee is the bank where the drawer has a deposit.

Fixed savings and current deposits of money in banks shall be governed by the provisions of a simple loan.

Not all bills of exchange require presentment for acceptance.

A blank indorsement is one which specifies no particular indorsee.

All bills of exchange require presentment for acceptance.

Promissory note and bill of exchange require presentment for payment.

Promissory note and bill of exchange require presentment for acceptance.

Order instrument is negotiated by delivery.

Dishonor by non-payment applies to promissory note and bill of exchange.

Dishonor by non-acceptance applies to promissory note and bill of exchange.

Dishonor by non-acceptance applies only to promissory note.

Dishonor by non-acceptance applies only to bill of exchange.

In a check, presentment for payment must be made within reasonable time after negotiation.

In a check, presentment for payment must be made within reasonable time after issue.

Presentment for acceptance is required if the bill of exchange is payable at a fixed period after sight.

Presentment for acceptance is not required if the bill of exchange is payable at a fixed period after sight.

The payee will become an indorser if he or she will negotiate a negotiable instrument.

The payee will become an indorsee if he or she will negotiate a negotiable instrument.

A check may be payable at a fixed future time.

Issue means the first delivery of the instrument complete in form to a person who takes it as indorser.

A check may be payable at a determinable future time.

A check is always payable on demand.

A promissory note is always payable on demand.

A bill of exchange is always payable on demand.

A promissory note maybe payable at a fixed future time.

A promissory note maybe payable at a determinable future time.

A bill of exchange maybe payable at a fixed future time.

A bill of exchange maybe payable at a determinable future time.

A negotiable instrument must be in writing.

The drawer or maker must sign a negotiable instrument.

A negotiable instrument must be payable to order or bearer.

The drawer must sign the promissory note.

The maker must sign the bill of exchange.

In all cases, the drawee of a bill of exchange must accept it in order to become the party primarily liable.

The drawee of the check must always be a bank.