With Regard to Negotiable Instruments, Which of the Following Is

question 126

Multiple Choice

With regard to negotiable instruments, which of the following is false?

• A) A cheque is a bill of exchange drawn on a bank, payable on demand.
• B) A cheque that has been certified cannot be countermanded by the drawer.
• C) A negotiable instrument used to advance credit in a consumer transaction must be marked "consumer purchase."
• D) Bills of exchange can be made payable for some future date.
• E) A drawer of a cheque can refuse to pay any holder of it if the drawer can prove that the payee obtained the cheque by fraud.

---

Definitions:

Progressive Tax

A tax system where tax rates increase as the taxable income increases, placing a higher burden on wealthier individuals.

Tax Schedules

Tables or formulas that determine the amount of tax due based on various factors, such as income level, filing status, and allowable deductions.

Economy

An area or system in which economic activities such as production, distribution, and consumption of goods and services occur.

Proportional Tax

A taxation system where the tax rate remains constant regardless of the amount subject to taxation.