Under Article 3 of the UCC,what Is the Effect of a Note

question 53

Multiple Choice

Under Article 3 of the UCC,what is the effect of a note not stating a time for payment?

• A) The note is void and unenforceable due to vagueness.
• B) The note is considered nonnegotiable,but might nonetheless be enforceable.
• C) The note is considered a time instrument with payment due at a reasonable time.
• D) The note is considered a demand instrument with payment due on demand.

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Definitions:

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, often represented by the yield on government securities such as U.S. Treasury bills.

Future Exchange Rate

The anticipated value of one currency in terms of another currency at a future date, often used in hedging and trading strategies.

Indifferent

A state of having no preference or being neutral between two or more choices in decision-making scenarios.

Equity Market

The marketplace where shares of companies are bought and sold, facilitating capital raising for listed companies and investment opportunities for buyers.