Question

A negotiable instrument can function as a substitute for cash.

a. True
b. False 2. a time draft is payable at a definite future time.
a. True
b. False 3. a promissory note payable to "bearer" is not negotiable.
a. True
b. False 4. a certificate of deposit is a type of note.
a. True
b. False 5. a signature can consist of a word, mark, or symbol.
a. True
b. False 6. an instrument that promises to pay "in gold" can be negotiable.

Answer 1

1.A negotiable instrument can function as a substitute for cash.- TRUE

2. a time draft is payable at a definite future time. TRUE

3. promissory note payable to "bearer" is not negotiable. - FALSE (It is negotiable)

4. A certificate of deposit is a type of note. - TRUE

5. A signature can consist of a word, mark, or symbol. - TRUE

6.An instrument that promises to pay "in gold" can be negotiable.- FALSE ( Anything payable in the form of a commodity like gold cannot be negotiable)