BUL3320 USF MYERS EXAM 3
QUESTIONS AND ANSWERS
Which of the following is an INCORRECT statement regarding the functions of
negotiable instruments?
B - answer- A.Certain forms of negotiable instruments, such as checks, serve as
substitutes for money.
B.As securities, negotiable instruments represent ownership in a corporation.
C.Without negotiable instruments, the "credit economy" of the United States and
other modern industrial countries would not be possible.
D.Negotiable instruments often serve as record-keeping devices.
E.Some forms of negotiable instruments extend credit from one party to another.
Which of the following is/are the function(s) of a negotiable instrument?
A - answer- A.substitute for money, credit device, and record-keeping device
B.credit device only
C.record-keeping device only
D.substitute for money only
E.creator of conditions for the payment of money
All of the following are examples of negotiable instruments EXCEPT?
E - answer- A.drafts
B.certificates of deposit
C.checks
D.promissory notes
E.documents that state that they are nonnegotiable
A ________ is a negotiable instrument known as a sight draft that arises when credit
is extended with the sale of goods.
E - answer- A.certificate of deposit.
B.nonnegotiable contract
C.promissory note.
, D.check
E.trade acceptance
Which of the following is NOT subject to Article 3 of the UCC?
D - answer- A.trade acceptance
B.check
C.certificate of deposit
D.nonnegotiable contract
E.promissory note
Article _____ of the _____ establishes rules for the creation of, transfer of,
enforcement of, and liability on negotiable instruments.
B - answer- A.3; Uniform Contracts Code
B.3; Uniform Commercial Code
C.2; Interstate Commerce Code
D.2(A); Uniform Contracts Code
E.2; Interstate Commerce Code
Certificate of Deposit - answer- a two-party negotiable instrument that is a special
form of note created when a depositor deposits money at a financial institution in
exchange for the institution's promise to pay back the amount of the deposit plus an
agreed-upon rate of interest upon the expiration of a set time period agreed upon by
the parties.
A ________ is a negotiable instrument known as a sight draft that arises when credit
is extended with the sale of goods.
D - answer- A.certificate of deposit.
B.nonnegotiable contract
C.check
D.trade acceptance
E.promissory note.
Which of the following is NOT subject to Article 3 of the UCC?
A - answer- A.
nonnegotiable contract
B.
check
C.
certificate of deposit
D.
trade acceptance
E.
promissory note
QUESTIONS AND ANSWERS
Which of the following is an INCORRECT statement regarding the functions of
negotiable instruments?
B - answer- A.Certain forms of negotiable instruments, such as checks, serve as
substitutes for money.
B.As securities, negotiable instruments represent ownership in a corporation.
C.Without negotiable instruments, the "credit economy" of the United States and
other modern industrial countries would not be possible.
D.Negotiable instruments often serve as record-keeping devices.
E.Some forms of negotiable instruments extend credit from one party to another.
Which of the following is/are the function(s) of a negotiable instrument?
A - answer- A.substitute for money, credit device, and record-keeping device
B.credit device only
C.record-keeping device only
D.substitute for money only
E.creator of conditions for the payment of money
All of the following are examples of negotiable instruments EXCEPT?
E - answer- A.drafts
B.certificates of deposit
C.checks
D.promissory notes
E.documents that state that they are nonnegotiable
A ________ is a negotiable instrument known as a sight draft that arises when credit
is extended with the sale of goods.
E - answer- A.certificate of deposit.
B.nonnegotiable contract
C.promissory note.
, D.check
E.trade acceptance
Which of the following is NOT subject to Article 3 of the UCC?
D - answer- A.trade acceptance
B.check
C.certificate of deposit
D.nonnegotiable contract
E.promissory note
Article _____ of the _____ establishes rules for the creation of, transfer of,
enforcement of, and liability on negotiable instruments.
B - answer- A.3; Uniform Contracts Code
B.3; Uniform Commercial Code
C.2; Interstate Commerce Code
D.2(A); Uniform Contracts Code
E.2; Interstate Commerce Code
Certificate of Deposit - answer- a two-party negotiable instrument that is a special
form of note created when a depositor deposits money at a financial institution in
exchange for the institution's promise to pay back the amount of the deposit plus an
agreed-upon rate of interest upon the expiration of a set time period agreed upon by
the parties.
A ________ is a negotiable instrument known as a sight draft that arises when credit
is extended with the sale of goods.
D - answer- A.certificate of deposit.
B.nonnegotiable contract
C.check
D.trade acceptance
E.promissory note.
Which of the following is NOT subject to Article 3 of the UCC?
A - answer- A.
nonnegotiable contract
B.
check
C.
certificate of deposit
D.
trade acceptance
E.
promissory note
