 |
| 1 | |
A substitute for cash, or a __________, is a written document containing the signature of the creator that makes an unconditional promise or order to pay a sum certain at either a time certain or on demand. |
| | A) | Contract |
| | B) | Promissory estoppel |
| | C) | Negotiable instrument |
| | D) | Negotiable estoppels |
|
|
|
| 2 | |
The UCC recognizes four specific types of negotiable instruments: |
| | A) | Notes, certificates of deposit, drafts, and checks |
| | B) | Notes, certificates of withdrawal, drafts, and checks |
| | C) | Notes, depository receipts, drafts, and checks |
| | D) | Notes, certificates of withdrawal, depository receipts, and checks |
|
|
|
| 3 | |
The Uniform Commercial Code (UCC) Section 3-108(a) defines an instrument "payable on __________" as one that "(i) states that it is payable on demand or at sight, or otherwise indicates that it is payable at the will of the holder; or (ii) does not state any time of payment". |
| | A) | Presentment |
| | B) | Date |
| | C) | Tender |
| | D) | Demand |
|
|
|
| 4 | |
Payment on a __________ instrument can be made only at a specific future time, which Uniform Commercial Code (UCC) Section 3-108(b) says must be easily determined from the document itself. |
| | A) | Time |
| | B) | Qualified |
| | C) | Conditional |
| | D) | Demand |
|
|
|
| 5 | |
Types of checks include all but which of the following? |
| | A) | Cashier's checks |
| | B) | Traveler's checks |
| | C) | Certified checks |
| | D) | Promissory checks |
|
|
|
| 6 | |
Which of the following is not a requirement for negotiability? |
| | A) | The instrument is in writing |
| | B) | The instrument is executed by a merchant |
| | C) | The instrument has an unconditional promise or order to pay |
| | D) | The instrument is signed by the creator of the instrument |
|
|
|
| 7 | |
Which of the following is not a requirement for negotiability? |
| | A) | The amount to be paid is a sum certain in money |
| | B) | The amount to be paid includes a fixed rate of interest |
| | C) | Payment is to be made either on demand or at a fixed future time |
| | D) | The document must contain the words of negotiability "to the order of" or, in the alternative, words indicating that it is a bearer instrument |
|
|
|
| 8 | |
Negotiable instruments must promise or order that payment be made in: |
| | A) | Goods of the type specified in the subject contract |
| | B) | Bearer bonds |
| | C) | A national currency |
| | D) | U.S. dollars only |
|
|
|
| 9 | |
A dated instrument that states "Payment is to be made at some future time after the above date" is __________. |
| | A) | Non-negotiable, and is not enforceable as a contract |
| | B) | Non-negotiable, although it may be enforceable as a contract |
| | C) | Negotiable, and may be enforceable as a contract |
| | D) | Negotiable, but is not enforceable as a contract |
|
|
|
| 10 | |
When a specific payee is named, this is known as a(n) ___________ instrument. |
| | A) | Designated |
| | B) | Unqualified |
| | C) | Order |
| | D) | Bearer |
|
|
.