Simply Signing Your Name as Your Indorsement of a Negotiable

question 112

Multiple Choice

Simply signing your name as your indorsement of a negotiable instrument:

• A) changes an order instrument into a bearer instrument.
• B) changes a bearer instrument into an order instrument.
• C) changes a draft into a note.
• D) makes the instrument non-negotiable except by a bank.
• E) removes all warranties and promises as an indorser.

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Definitions:

Infinitesimal Odds

Extremely small chances or probabilities of a specific event occurring.

Framing Effects

In prospect theory, changes in people’s decision making caused by new information that alters the context, or “frame of reference,” that they use to judge whether options are viewed as gains or losses relative to the status quo.

Specialty Shops

Retail businesses that focus on selling a particular type or category of product, offering a narrow but deep assortment of merchandise.

Big Box Stores

Large retail stores that offer a wide variety of goods and typically have a warehouse or warehouse-like design.