An Instrument Is Negotiable If It Satisfies Six Standards

question 34

Multiple Choice

An instrument is negotiable if it satisfies six standards.Which of the following is a standard of negotiability?

• A) The instrument can be oral provided there is proof beyond a reasonable doubt.
• B) The instrument must be payable on demand.
• C) The instrument must be conditional.
• D) The instrument must state a definite sum of money.

---

Definitions:

Capital

Assets used for the production of goods and services, including machinery, buildings, and equipment.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating scarce resources to satisfy their unlimited wants.

Profit

The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes involved in sustaining the activity.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts and/or the physical factors of production including machinery and buildings.