Which of the Following Statements Is TRUE with Respect to Negotiable

question 41

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:

Disqualified Income

Types of income that cannot be considered or used for certain applications or benefits, as defined by specific rules or guidelines.

Dividends

Payments made by a corporation to its shareholder members, representing a portion of the corporate profits.

American Opportunity Tax Credit

A credit for qualified education expenses paid for an eligible student for the first four years of higher education, with the potential to receive a partial refund if the credit is more than the taxpayer owes.

Lifetime Learning Credit

A tax credit available in the United States for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution, aiming to promote post-secondary education.