Wayne Issues a Draft Payable to Molly

question 64

Multiple Choice

Wayne issues a draft payable to Molly.Molly indorses the draft in blank on the back and gives it to Jerry.Which of the following statements correctly describes the status of this instrument?

• A) The draft started out as a bearer paper, but Molly converted it to order paper.
• B) The draft started out as order paper, but Molly converted it to bearer paper.
• C) The draft started out as bearer paper and it is still bearer paper.
• D) The draft started out as order paper and it is still order paper.
• E) The draft started out as a draft but Molly converted it to a promissory note.

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Definitions:

Modified Hinge Joint

A type of synovial joint that allows predominantly bending motion like a hinge but with limited rotational movement for added flexibility.

Condylar Joint

A type of synovial joint that allows movement but is constrained to one axis; for example, the joint between the skull and the atlas (first cervical vertebra).

Hyperextension

An excessive extension of a limb or part of the body beyond its normal limit.

Circumduction

A movement at a synovial joint where the limb moves in a circle.