Which of the Following Is Not Necessary for an Instrument

question 48

Multiple Choice

Which of the following is not necessary for an instrument to be negotiable? It must . . .

• A) be signed
• B) contain a promise or an order to pay
• C) must be for a certain amount
• D) must be payable on demand
• E) have been acquired for consideration

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Definitions:

Single Payment

A one-time transaction to settle a liability or complete a purchase.

Interest Annually

Interest annually refers to interest that is calculated and added to the principal balance once per year.

Term Deposit

A bank deposit that has a fixed term and typically offers a higher interest rate than savings accounts.

Credit Union

A member-owned financial cooperative that provides traditional banking services.