A Draft Made Out in the United States Calls for Payment

question 49

Multiple Choice

A draft made out in the United States calls for payment in German marks. Which of the following statements is correct?

• A) The draft is nonnegotiable since it must be paid in German marks.
• B) The draft is nonnegotiable because the rate of exchange fluctuates and it will interfere with the requirement that the instrument be payable in a fixed sum of money.
• C) The draft is negotiable if it satisfies all the requirements of negotiability under Article 3 of the UCC.
• D) The instrument is negotiable only if the exchange rate is written on the draft.

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Definitions:

Learned Needs Model

A theory that suggests that needs can be acquired through experiences and situation, shaping an individual's behavior and motivations.

Self-actualization Needs

The highest level in Maslow's hierarchy of needs, involving the pursuit of realizing one's own potential, self-fulfillment, and personal growth.

Full Potential

The highest or greatest level of performance, achievement, or utilization that an individual, group, or entity is capable of reaching.

Achievement Motivation

The drive to excel, achieve in relation to a set of standards, or strive to succeed.