Would an Instrument Containing the Following Language Be Negotiable? "Harold

question 57

Multiple Choice

Would an instrument containing the following language be negotiable? "Harold T. Stone, as President, hereby promises to pay $12,348 to the order of Joe Jones Furniture for office equipment for Redtyn Corporation, payable from its corporate assets. (Signed) Harold T. Stone as President, Redtyn Corporation."

• A) No, because the promise refers to another contract.
• B) No, because its payment is limited to a particular fund.
• C) Yes, because Redtyn is a business entity.
• D) Yes, because it meets all the requirements of negotiability.

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Definitions:

Behavioral Economists

Economists focusing on how psychological, social, cognitive, and emotional factors influence the economic choices made by individuals and institutions.

Systematic Errors

Errors that consistently occur in the same direction and are caused by faults in the measurement system, not randomness.

Irrational

Behavior or actions that are not based on sound judgment or logic, often contrary to self-interest.

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A situation where financial assets suddenly lose a significant part of their nominal value, often leading to bankruptcies and economic downturns.