The Two Classes of Negotiable Instruments Are

question 4

Multiple Choice

The two classes of negotiable instruments are

• A) sight drafts and time drafts.
• B) promissory notes and cheques.
• C) those governed by the Bills of Exchange Act and share certificates.
• D) promissory notes and drafts.
• E) those governed by the Bills of Exchange Act and those governed by other statutes and other laws.

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Definitions:

Cash Advance

A service provided by credit card companies that allows cardholders to withdraw a certain amount of cash, often with a fee and high interest rates.

Credit Card

A plastic card issued by financial institutions that allows users to borrow funds for purchases, subject to repayment with interest.

Money Center Banks

Large banks that borrow from and lend to governments, other banks, and corporations.

Corporations

Legal entities that are separate from their owners, with the ability to own assets, incur liabilities, and engage in business activities.