True/False
Indicate whether the sentence or statement is true
or false.
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1.
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A
negotiable instrument serves as a substitute for cash.
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2.
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On a
trade acceptance, the drawee is also the payee.
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3.
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A
check is a draft.
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4.
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A
promissory note cannot be a negotiable instrument.
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5.
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CDs
generally acknowledge the holder's deposit and only implicitly suggest a promise to
repay.
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6.
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A
notation on an instrument that it is "negotiable" is sufficient to render it
negotiable.
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7.
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For
an instrument to be negotiable, it must be in writing.
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8.
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The
writing evidencing a negotiable instrument must be reproduced on high-quality, letter- or legal-size
paper.
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9.
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An
instrument does not have to be signed by its maker or drawer to be negotiable.
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10.
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Rubber stamp signatures can be legally binding signatures.
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11.
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To be
negotiable, the terms of a promise or order must be included on the face of the
instrument.
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12.
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To be
negotiable, an instrument must include an unconditional promise to pay.
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13.
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An
instrument that states simply "I.O.U." is negotiable.
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14.
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Stating on an instrument that it is "as per contract" renders it
nonnegotiable.
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15.
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An
instrument that promises to pay "in gold" can be negotiable.
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16.
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A
holder is any person in possession of a negotiable instrument payable to bearer or to an identifiable
person who is the person in possession.
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17.
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A
promissory note is negotiable even if it does not state that it is payable on demand or at a definite
time.
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18.
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An
instrument payable to the order of a specified person is negotiable.
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19.
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An
undated instrument cannot be negotiable.
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20.
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A
notation on a check that it is "nonnegotiable" is sufficient to render it
nonnegotiable.
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