Worksheetshuuu
Total questions: 12
Worksheet time: 6mins
The most common form of negotiable instrument is a promissory note.
True
False
Check use in the United States is beginning to decline.
True
False
Which of the following features of a check indicates who is to receive the funds?
the bearer
the signature
the payee
the memo
The person who signs a draft is the
drawee.
drawer.
payee.
bearer.
Which of the following is NOT an element of negotiability?
must contain a signature
must be written
must be payable on demand
must state the amount to be paid
The term negotiation, as it applies to a negotiable instrument, applies to
the ability of the holder to obtain its value.
the conditions of the instrument.
the terms of the instrument.
all of the above.
Which of the following endorsements is the least secure?
qualified endorsement
full endorsement
restrictive endorsement
blank endorsement
Which of the following is an example of a restrictive endorsement?
“For Deposit Only”
the signature of the holder
“Pay to the Order of Tevin Washington”
“Pay to the Order of Jill Davies, without recourse”
Which of the following largely eliminated the wide variation of legal regulation from the country’s payments system?
Federal Reserve Act of 1913
Uniform Commercial Code of 1958
National Banking Act of 1864
Expedited Funds Availability Act of 1987
Which of the following directly transfers money from a person’s account to the account of a retailer?
charge card
credit card
debit card
cash card
The 9-digit number printed on a check that identifies the bank that holds the checking account and is responsible for
payment is called the
transit number.
account number.
check number.
NSF number.
Marisol has written a $500 check to Stephen, but she has only $300 in her account and it is returned unpaid to
Stephen. Marisol has written a
floating check.
promissory note.
postdated check.
bounced check.
