An Unconditional Written Promise Made by One Person to Another

question 49

Multiple Choice

An unconditional written promise made by one person to another, signed by the maker, that promises to pay on demand a specific sum of money to the bearer is a:

• A) negotiable draft.
• B) bill of exchange.
• C) promissory note.
• D) certificate of deposit.

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Definitions:

Federal Budget

An itemized plan for the annual public expenditures of the United States, detailing government spending and revenue.

Paradox Of Thrift

The economic theory that personal savings can be detrimental to overall economic growth if too high, as they may reduce overall demand.

Great Recession

A severe global economic recession that occurred from late 2007 through mid-2009, characterized by widespread financial crisis, high unemployment, and significant drops in the economic activity.

High Inflation

A situation where prices for goods and services rise rapidly over a period, eroding purchasing power and potentially destabilizing the economy.