Which of the Following Is a Requirement for Commercial Paper

question 231

Multiple Choice

Which of the following is a requirement for commercial paper to be considered a negotiable instrument?

• A) It must be signed in approval by a third party.
• B) It must contain a conditional promise to pay.
• C) It must be a promise to pay a specified amount of money.
• D) It must be an oral agreement between two or more parties.

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Definitions:

Series E Bonds

Government bonds issued at a discount and meant for investors as a savings product, no longer available for purchase.

Maturity Date

The specified date on which the final payment of a loan or financial instrument is due to be paid in full.

Cash Method

An accounting method where revenues and expenses are recognized at the time cash is received or paid out.

Record Income

The total income reported by an individual or entity for a specific period, usually for tax purposes.