Negotiable Instruments

question 24

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:

Defined Contribution

A type of retirement plan where the employer, employee, or both make contributions on a regular basis, but the final benefits received depend on the investment's performance.

Defined Benefit

A type of pension plan where the benefits that an employee will receive upon retirement are predefined based on factors like salary and tenure.

Pension Plan

A retirement plan that requires an employer to make contributions into a pool of funds set aside for an employee's future benefit.

Defined Benefit Plan

A pension plan that promises employees a fixed annual pension benefit at retirement, based on years of service and compensation levels.