Negotiable Instruments Ch. 22 Exam Questions &
Answers Already Graded A+
You decide to sell your antique Mercedes, so you post an ad on Facebook Marketplace. Your friends
advise you to require payment with a cashier's check only and to not take any personal checks. You get
your first potential customer who comes out and looks at the car. She offers you the full price you are
asking but wants to pay with a personal check.
Why do you think your friends advised you to require payment with a cashier's check instead of a
personal check? - Answer With a cashier's check, the bank has already committed itself to pay the
amount stated on the cashier's check.
Shawn is creating a negotiable instrument to give to Craig and Shawn does not want to involve a
financial institution. Which type of negotiable instrument will Shawn make? - Answer Promissory Note
Shawn will pay Craig with a negotiable instrument, and Shawn plans to involve a third party in that
process. What instrument should he use? Choose 2 answer choices - Answer Draft
Check
What party to a negotiable instrument is involved with both an order to pay and a promise to pay? -
Answer Payee
Which party is involved with a certificate of deposit? Choose 2 answer choices. - Answer Maker
Payee
Miranda received a draft in the mail and is concerned it is not valid. What issue or feature could
invalidate a draft? - Answer No drawee is mentioned.
Which feature is a requirement for a negotiable instrument to be a valid draft instrument? Choose 2
answer choices. - Answer Drafts must designate a financial institution.
Drafts must state a definite amount of money to be paid.
What parties could have a right to enforce a negotiable instrument? Choose 3 answer choices. - Answer
A holder who lost a check
Answers Already Graded A+
You decide to sell your antique Mercedes, so you post an ad on Facebook Marketplace. Your friends
advise you to require payment with a cashier's check only and to not take any personal checks. You get
your first potential customer who comes out and looks at the car. She offers you the full price you are
asking but wants to pay with a personal check.
Why do you think your friends advised you to require payment with a cashier's check instead of a
personal check? - Answer With a cashier's check, the bank has already committed itself to pay the
amount stated on the cashier's check.
Shawn is creating a negotiable instrument to give to Craig and Shawn does not want to involve a
financial institution. Which type of negotiable instrument will Shawn make? - Answer Promissory Note
Shawn will pay Craig with a negotiable instrument, and Shawn plans to involve a third party in that
process. What instrument should he use? Choose 2 answer choices - Answer Draft
Check
What party to a negotiable instrument is involved with both an order to pay and a promise to pay? -
Answer Payee
Which party is involved with a certificate of deposit? Choose 2 answer choices. - Answer Maker
Payee
Miranda received a draft in the mail and is concerned it is not valid. What issue or feature could
invalidate a draft? - Answer No drawee is mentioned.
Which feature is a requirement for a negotiable instrument to be a valid draft instrument? Choose 2
answer choices. - Answer Drafts must designate a financial institution.
Drafts must state a definite amount of money to be paid.
What parties could have a right to enforce a negotiable instrument? Choose 3 answer choices. - Answer
A holder who lost a check
