Which of the Following Is True Regarding Negotiation of an Instrument

question 27

Multiple Choice

Which of the following is true regarding negotiation of an instrument?

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

---

Definitions:

Insurance

A risk management tool that provides financial protection against loss or harm in exchange for premium payments.