True/False
Indicate whether the
statement is true or false.
|
|
|
1.
|
A draft is an unconditional written order that involves two parties.
|
|
|
2.
|
A trade acceptance is a draft.
|
|
|
3.
|
A promissory note that states it is payable within ninety days represents an
extension of credit by the holder to the debtor.
|
|
|
4.
|
A cashier's check drawn by a bank on itself is an instrument in which the
bank is both the drawer and the drawee.
|
|
|
5.
|
A certificate of deposit represents a loan by its owner to a bank.
|
|
|
6.
|
An instrument is nonnegotiable unless the word "negotiable" is printed
on it.
|
|
|
7.
|
To be negotiable, an instrument must be portable.
|
|
|
8.
|
A trade name can serve as a valid signature.
|
|
|
9.
|
A signature can consist of initials signed by a party.
|
|
|
10.
|
To be negotiable, an instrument must be signed in the lower right-hand
corner.
|
|
|
11.
|
An acknowledgment of indebtedness is sufficient to create a negotiable
instrument.
|
|
|
12.
|
An order stating "I wish you would pay" is sufficient to create a
negotiable instrument.
|
|
|
13.
|
A conditional promise to pay is not a negotiable instrument.
|
|
|
14.
|
To be negotiable, an instrument must be payable in money.
|
|
|
15.
|
An instrument that promises to pay "in goods" can be
negotiable.
|
|
|
16.
|
An acceptor is a drawee who has agreed to pay an instrument when it is presented
later for payment.
|
|
|
17.
|
A promissory note is not negotiable if reference must be made to foreign
exchange rates at the time payment is due.
|
|
|
18.
|
An extension clause on an instrument is the reverse of an acceleration
clause.
|
|
|
19.
|
A check "payable to the order of bearer" is neither an order
instrument nor a bearer instrument.
|
|
|
20.
|
Normally, if the numerical amount and the written amount on a check differ, the
words outweigh the figures.
|