Jared Writes Lisa a Check for $500

question 2

Multiple Choice

Jared writes Lisa a check for $500.Because the check does not specify a time of payment,it is considered a

• A)certificate of deposit.
• B)demand instrument.
• C)nonnegotiable instrument.
• D)promissory note.

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Definitions:

Promissory Note

A financial instrument containing a written promise by one party to pay another a definite sum of money either on demand or at a specified future date.

Negotiable

Capable of being transferred or assigned from one party to another, often used in the context of financial instruments.

Nonexistent Person

A fictional or imagined individual who does not exist in reality.

Negotiable

Capable of being transferred or converted into goods, services, or money under terms agreeable to all parties involved.