Which of the Following Does Not Satisfy the Requirement That

question 6

Multiple Choice

Which of the following does not satisfy the requirement that to be negotiable an instrument must be payable at a time certain or on demand?

• A) The instrument states a specific date for payment.
• B) The instrument is dated and then states that "payment will be made 5 days after the above date."
• C) An instrument that states that payment is due at a fixed time but may be extended at the election of the holder.
• D) An instrument that states that "payment will be made 10 days after delivery of the goods."
• E) An instrument that permits acceleration of payment and has a fixed date of payment if the acceleration clause is not affected.

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Definitions:

Firm's Securities

Financial instruments issued by a company, such as stocks or bonds, representing ownership or creditorship in the firm.

Preferred Dividends

Dividends that are allocated and paid to preferred shareholders before any dividends can be issued to common shareholders.

Voting Rights

The rights of shareholders to vote on company matters, typically exercised at annual meetings.

Dow Jones Industrial Average (DJIA)

A stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States, representing a significant indicator of the market's overall health.