Wayne Issues a Draft Payable to Molly

question 2

Multiple Choice

Wayne issues a draft payable to Molly.Molly indorses the draft in blank on the back and gives it to Jerry.Which of the following statements correctly describes the status of this instrument?

• A) The draft started out as bearer paper,but Molly converted it to order paper.
• B) The draft started out as order paper,but Molly converted it to bearer paper.
• C) The draft started out as bearer paper and it is still bearer paper.
• D) The draft started out as order paper and it is still order paper.

---

Definitions:

Insight

Insight involves the ability to understand the inner nature of things or a clear, deep understanding of a complicated problem or situation.

Latent Learning

A form of learning that occurs without any obvious reinforcement or rewards, becoming apparent only when there is an incentive to demonstrate it.

Previous History

A record or background of past events or situations, especially as relevant to a particular subject or individual.

Cognitive Learning Theories

A group of theories in psychology that explain how people process information, learn, and remember through understanding, thinking, and reasoning.