EZ Credit Company Signs an Instrument Payable to the Order

question 9

Multiple Choice

EZ Credit Company signs an instrument payable to the order of Flem that states, "The maker of this note at the date of maturity, May 1, 2011, can extend the time of pay?ment, but for no more than a rea?sonable time." This instrument is

• A) negotiable.
• B) nonnegotiable, because it includes an extension clause.
• C) nonnegotiable, because it is not payable within a definite time.
• D) nonnegotiable, because it is payable to a specific payee.

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Definitions:

Least Possible Cost

The minimum expense required to achieve a particular economic objective.

General Equilibrium

A situation in which supply and demand are balanced across all markets in the economy.

Simultaneously Equilibrium

A condition in which demand and supply are balanced at the same time across multiple markets or within a complex system.

Capital Flow

The movement of money for the purpose of investment, trade, or business production between countries.