If an Instrument Fails to Qualify as a Negotiable Instrument

question 50

Multiple Choice

If an instrument fails to qualify as a negotiable instrument, which of the following statements is true?

• A) The instrument by definition fails to be a good contract.
• B) Failure to qualify as a negotiable instrument does not mean the instrument fails to be a good contract.
• C) The instrument by definition is a good contract.
• D) The instrument by definition is a good contract only if it is made out in an amount less than $1,000.
• E) The instrument by definition is a good contract only if it is made out in an amount more than $1,000.

---

Definitions:

Demand

The desire and ability of consumers to purchase goods and services at different prices, contributing to determining the market demand.

Utility Function

A mathematical representation of how a consumer's preferences over bundles of goods relate to their satisfaction or utility.

Consumption

The use of goods and services by households or individuals, which is a primary component of economic activity.

Income

The cash flow generated out of work or investments, typically on a steady basis.