Negotiable Instruments Quiz
Test your knowledge of negotiable instruments such as checks, promissory notes, and bills of exchange.
Full Name
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First Name
Last Name
Email Address
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example@example.com
Which of the following is NOT a negotiable instrument?
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Promissory Note
Check
Invoice
Bill of Exchange
Select all features that apply to a negotiable instrument:
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Transferable by endorsement and delivery
Represents a sum of money payable to order or bearer
Requires notarization to be valid
Contains an unconditional promise or order to pay
Other
A promissory note is:
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An unconditional order to pay
An unconditional promise to pay
A conditional order to pay
A receipt for payment
Match the negotiable instrument to its definition:
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Rows
Check
Promissory Note
Bill of Exchange
Definition
Order to pay drawn on a bank
Promise to pay by maker
Order to pay by drawer to drawee
Order to pay drawn on a bank
Promise to pay by maker
Order to pay by drawer to drawee
Order to pay drawn on a bank
Promise to pay by maker
Order to pay by drawer to drawee
A check is always drawn on a
Bank
.
Which of the following statements about endorsement is TRUE?
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Only the payee can endorse a negotiable instrument.
Endorsement is not required for negotiation.
Endorsement transfers the rights to another party.
Endorsement cancels the negotiable instrument.
Rate your confidence in your knowledge of negotiable instruments:
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Not confident
1
2
3
4
Very confident
5
1 is Not confident, 5 is Very confident
Which parties are involved in a bill of exchange? (Select all that apply)
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Drawer
Drawee
Payee
Guarantor
Other
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