Which of the Following Statements Is TRUE with Respect to Negotiable

question 42

Multiple Choice

Which of the following statements is TRUE with respect to negotiable instruments?

• A)Technically speaking, there are only three types of negotiable instruments: cheques, bills of exchange, and promissory notes.
• B)The Bills of Exchange Act applies to every type of negotiable instrument.
• C)Unlike most contracts, a negotiable instrument is effective only if it is written and signed.
• D)A negotiable instrument is valid as long as it provides a mechanism that the drawer can use to determine how much the payee is entitled to receive.
• E)A negotiable instrument is effective only if it contains a conditional obligation to pay money.

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Definitions:

Short Rate

The interest rate applied to the shortest duration loans or borrowings, often seen in monetary policy adjustments.

Annual Premium

The total amount paid yearly to keep an insurance policy active.

Collision Deductible

A collision deductible is the out-of-pocket amount a policyholder agrees to pay before their insurance coverage applies to repair vehicle damages in the event of an accident.

Insurance Premiums

Payments made to insurance companies to provide coverage and protect against various risks or damages.