Which of the Following Statements,if It Appeared on a Negotiable

question 15

Multiple Choice

Which of the following statements,if it appeared on a negotiable instrument,would destroy the negotiability of that instrument?

• A) "Payment for tuition."
• B) "This instrument arises out of a sales contract between Sam and Sandy."
• C) "This instrument hereby incorporates by reference the sales contract between Sam and Sandy."
• D) "This note is secured by a mortgage."
• E) "Charge to miscellaneous expense."

---

Definitions:

Halo Effect

A cognitive bias where the perception of one positive quality in a person leads to the unjustified extension of positive evaluation to other qualities.

Favorable Impression

The positive perception or judgment of someone or something based on initial interactions or information.

Interview Bias

A type of response bias that occurs in research when the interviewer’s beliefs, views, or characteristics unduly influence the subject's responses, leading to skewed results.

Subject Bias Effect

The influence of a participant’s preconceptions or expectations on their behavior in an experiment, potentially skewing results.