Which of the Following Will Result in an Instrument Being

question 24

Multiple Choice

Which of the following will result in an instrument being nonnegotiable?

• A) It contains a variable interest rate such that the amount of interest that will be due cannot be determined at the time the note is created.
• B) It states that the payment of funds will come from the proceeds of a specific contract.
• C) It states that the entire balance will become immediately due in the event of a default by the maker.
• D) It states that the rights of the payee to receive payment are subject to the terms of a separate agreement.

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Definitions:

Acetic Acid

A colorless organic compound with the chemical formula CH3COOH, commonly known as the main component of vinegar.

Aerobic Respiration

A process of producing cellular energy involving oxygen. Cells break down food in the mitochondria in a long, multi-step process that produces roughly 36 ATP molecules.

Organic Materials

Matter that has come from a recently living organism; it is capable of decay or the product of decay, or is composed of organic compounds.