Which Statement Is True Regarding Negotiation of an Instrument

question 17

Multiple Choice

Which statement is true regarding negotiation of an instrument?

• A)Negotiation of an order instrument is by endorsement plus delivery,while negotiation of a bearer instrument is by delivery alone.
• B)Negotiation of a bearer instrument is by endorsement plus delivery,while negotiation of an order instrument is by delivery alone.
• C)Negotiation of both an order instrument and bearer instrument is by delivery alone.
• D)Negotiation of both an order instrument and a bearer instrument requires both delivery and an additional three days to allow for bank clearance.
• E)Negotiation of both an order instrument and bearer instrument require endorsement plus delivery.

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Definitions:

Elasticity of Supply

A measure of how much the quantity supplied of a good or service changes in response to a change in price.

Factor of Production

Inputs used in the production of goods or services, typically categorized into land, labor, capital, and entrepreneurship.

Cross Elasticity of Demand

The ratio of the percentage change in quantity demanded of one good to the percentage change in the price of some other good. A positive coefficient indicates the two products are substitute goods; a negative coefficient indicates they are complementary goods.

Inferior Goods

Goods for which demand decreases as the income of the consumer increases, as they are typically replaced with more expensive alternatives.