Which One of the Following Is a Three-Party Transaction

question 37

Multiple Choice

Which one of the following is a three-party transaction?

• A)a promissory note
• B)a certificate of deposit
• C)an ordinary lease
• D)a draft

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Definitions:

Subsidiary

A company that is completely or partly owned and partly or wholly controlled by another company.

Compounded Annually

The process of adding interest to the principal sum of an investment, loan, or deposit once per year.

Monthly Payment

A fixed amount of money paid every month, typically as part of a loan or mortgage repayment schedule.

Compounded Quarterly

This refers to the method where interest on a financial product is calculated and added to the principal sum every three months.