A Two-Party Negotiable Instrument That Is a Special Form of Note

question 12

Multiple Choice

A two-party negotiable instrument that is a special form of note created when a person deposits money at a financial institution in exchange for the institution's promise to pay back the amount of the deposit plus an agreed-on rate of interest upon the expiration of a set time period agreed upon by the parties is known as a ________.

• A) collateral note
• B) check
• C) certificate of deposit
• D) bill of exchange

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Definitions:

Mental Illness

A broad range of mental health conditions that affect mood, thinking, and behavior, which may impact day-to-day functioning and relationships.

Capacity

Refers to the legal competence of an individual or organization to enter into a binding contract and understand the obligations it imposes.

Bargaining

The process of negotiating the terms of an agreement or contract between two or more parties.

Ratification

The act of formally confirming or approving an agreement or act, making it officially valid.