Which of the Following Is True If an Instrument Fails

question 1

Multiple Choice

Which of the following is true if an instrument fails to qualify as a negotiable instrument?

• A) The instrument by definition fails to be a good contract.
• B) Failure to qualify as a negotiable instrument does not mean the instrument fails to be a good contract.
• C) The instrument by definition is a good contract.
• D) The instrument by definition is a good contract only if it is made out in an amount less than $1,000.
• E) The instrument by definition is a good contract only if it is made out in an amount more than $1,000.

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Definitions:

Carrying Value

The book value of an asset as reported in the balance sheet, calculated as the original cost minus accumulated depreciation.

Par Value

The face value of a stock or bond as specified by the issuing company, which may differ from its market value.

Retirement

The point in time when an individual stops working in their professional career, often associated with aging and financial planning for the post-work phase of life.

Gain or Loss

The financial result that occurs when the selling price of an asset is higher or lower than its purchase price, respectively.