Which of the Following Would Be a Nonnegotiable Instrument

question 28

Multiple Choice

Which of the following would be a nonnegotiable instrument?

• A)"Payment is subject to the terms of a mortgage dated August 12,2011."
• B)A statement in the instrument that it was given in payment of last month's rent.
• C)A statement in the instrument that it was given in payment of the purchase price of goods.
• D)"This note is secured by a mortgage dated January 13,2011."

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Definitions:

Firms

Entities that produce goods or provide services, typically with the aim of making a profit.

Monetary Policy

The actions of a central bank, currency board or other regulatory authorities that determine the size and rate of growth of the money supply, which in turn affects interest rates.

Circular-Flow Diagram

A visual model showing the interactions between households and firms in an economy, illustrating the flows of goods and services and factors of production in markets.

Factors Of Production

The resources including labor, land, capital, and entrepreneurship, that are used in the production of goods and services.