BUL3320 USF MYERS EXAM 3 Questions And Answers

Which of the following is an INCORRECT statement regarding the functions of negotiable​ instruments? B - ANS 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 - ANS 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 - ANS 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 - ANS 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 - ANS 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 - ANS 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 - ANS 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 - ANS 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 - ANS A. nonnegotiable contract B. check C. certificate of deposit D. trade acceptance E. promissory note Which of the following is an INCORRECT statement regarding the functions of negotiable​ instruments? A - ANS A.As​ securities, negotiable instruments represent ownership in a corporation. B.Without negotiable​ instruments, the​ "credit economy" of the United States and other modern industrial countries would not be possible. C.Some forms of negotiable instruments extend credit from one party to another. D.Negotiable instruments often serve as​ record-keeping devices. E.Certain forms of negotiable​ instruments, such as​ checks, serve as substitutes for money. Justin has a checking account at Country Bank. When Justin purchases a car from​ Mary's Motors, a car​ dealership, Justin pays for the car by writing a check on the bank made payable to​ Mary's Motors. In this​ case, Justin is the​ _____, Country Bank is the​ _____, and​ Mary's Motors is the​ _____. - ANS drawer; drawee; payee