Which of the Following Statements Is TRUE with Respect to Promissory

question 28

Multiple Choice

Which of the following statements is TRUE with respect to promissory notes?

• A)A promissory note always involves three different parties, called the maker, the payee, and the payer.
• B)Unlike a cheque or a bill of exchange, a promissory note is effective even without consideration because it consists of a promise to pay money.
• C)The subject matter of a promissory note can be either the payment of money or the performance of services.
• D)A promissory note must be payable in instalments.
• E)A promissory note usually requires the payment of interest, but it need not do so.

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Definitions:

Purpose

The reason for which something is done or created, or for which something exists.

Customized Solution

A tailored answer or product designed to meet the specific needs of an individual or organization.

Tailor

To customize or adjust something to suit specific needs, preferences, or requirements.

Strategic Customer Relationship

A formal relationship between the seller and customer with the purpose of being in joint pursuit of mutual goals.