Negotiable Instruments

question 53

Multiple Choice

Negotiable instruments:

• A) include drafts, promissory notes, assignments, and certificates of deposit.
• B) are used primarily for smaller transactions.
• C) in the form of checks have decreased in use since 2000.
• D) have increased in usage to the point where they are now approximately equal to usage of cash for payments.

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Definitions:

Legal Rights

Refers to the entitlements granted by legal systems or societal norms to individuals or entities, encompassing freedoms, privileges, and protections under law.

Clearing

The process of reconciling purchases and sales of various options, futures, or securities, as well as the direct transfer of funds from one financial institution to another.

Refuse To Honor

The act of not accepting, acknowledging, or fulfilling an agreement, request, or instruction.

Enough Money

Implies having sufficient funds to meet needs, obligations, or desired goals without financial strain.