Which of the Following Is Not True Regarding a Promissory

question 24

Multiple Choice

Which of the following is not true regarding a promissory note?

• A)Promissory notes may not be transferred to another party by endorsement.
• B)Promissory notes may be sold to another party.
• C)Promissory notes give a stronger legal claim to the holder than accounts receivable.
• D)Promissory notes may be bearer notes and not specifically identify the payee by name.

---

Definitions:

Bonds

Fixed-income investments representing loans made by an investor to a borrower, typically corporate or governmental, which include terms for fixed interest payments and the eventual return of principal.

Gold Reserves

The quantity of gold held by a national central bank or government intended to serve as a store of value and as a guarantee to redeem promises to pay depositors, note holders, or trading peers.

International Monetary Fund

An international organization that aims to foster global monetary cooperation, secure financial stability, and facilitate international trade.

Special Reserves

Funds or assets set aside for specific, often unforeseen, needs or requirements.