Which of the Following Would Be a Bearer Instrument

question 29

Multiple Choice

Which of the following would be a bearer instrument?

• A) A check payable to cash
• B) A check that says "pay to the order of John Jones"
• C) A check that says "pay to the order of Quality Oil Company"
• D) A municipal bond issued in 2010.

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Definitions:

Discounted Payback

The period it takes for an investment to break even in cash flow terms, adjusted for the time value of money.

Required Return

The minimum gain or profit that investors expect to receive on an investment relative to its risk.

Average Accounting Rate

A financial metric that represents the average rate of return earned on investments or assets, based on accounting values.

Net Income

The total profit of a company after all expenses, including taxes and operational costs, have been deducted from total revenues.