QUESTION 7 Which of the following is true regarding an IOU instrument containing the language "payable on demand"? O The instrument contains an unconditional promise to pay but nevertheless is not negotiable because it is an IOU instrument. O The instrument is not negotiable because the words "payable on demand" are included; otherwise, the IOU instrument would contain an unconditional promise to pay. The instrument contains an unconditional promise to pay; and; therefore, the fact that it is an IOU instrument does not affect negotiability. O The instrument is not negotiable because it does not contain an unconditional promise or order to pay, but it may be an enforceable contract. O The instrument is not negotiable, nor could it be an enforceable contract, because it does not contain an unconditional promise to pay. QUESTION 8 Which of the following is not a negotiable instrument? O Traveler's check Certified check OU.S. Dollars O Note O Certificate of deposit QUESTION 9 In the United States, which statement is true regarding the type of currency needed to satisfy the currency requirement for negotiability in the United States? O U.S. dollars, credit cards and debit cards are the only satisfactory currency. OU.S. dollars, English pounds, Euros, Japanese yen, gold, silver and apples are all satisfactory currency. O U.S. dollars is the only satisfactory currency. # O U.S. dollars, English pounds, Euros, and Japanese yen are all satisfactory currency. OU.S. dollars or gold or silver are the only satisfactory currency.
QUESTION 7 Which of the following is true regarding an IOU instrument containing the language "payable on demand"? O The instrument contains an unconditional promise to pay but nevertheless is not negotiable because it is an IOU instrument. O The instrument is not negotiable because the words "payable on demand" are included; otherwise, the IOU instrument would contain an unconditional promise to pay. The instrument contains an unconditional promise to pay; and; therefore, the fact that it is an IOU instrument does not affect negotiability. O The instrument is not negotiable because it does not contain an unconditional promise or order to pay, but it may be an enforceable contract. O The instrument is not negotiable, nor could it be an enforceable contract, because it does not contain an unconditional promise to pay. QUESTION 8 Which of the following is not a negotiable instrument? O Traveler's check Certified check OU.S. Dollars O Note O Certificate of deposit QUESTION 9 In the United States, which statement is true regarding the type of currency needed to satisfy the currency requirement for negotiability in the United States? O U.S. dollars, credit cards and debit cards are the only satisfactory currency. OU.S. dollars, English pounds, Euros, Japanese yen, gold, silver and apples are all satisfactory currency. O U.S. dollars is the only satisfactory currency. # O U.S. dollars, English pounds, Euros, and Japanese yen are all satisfactory currency. OU.S. dollars or gold or silver are the only satisfactory currency.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:QUESTION 7
Which of the following is true regarding an IOU instrument containing the language "payable on demand"?
O The instrument contains an unconditional promise to pay but nevertheless is not negotiable because it is an IOU instrument.
O The instrument is not negotiable because the words "payable on demand" are included; otherwise, the IOU instrument would contain an unconditional promise to
pay.
O The instrument contains an unconditional promise to pay; and; therefore, the fact that it is an IOU instrument does not affect negotiability.
O The instrument is not negotiable because it does not contain an unconditional promise or order to pay, but it may be an enforceable contract.
The instrument is not negotiable, nor could it be an enforceable contract, because it does not contain an unconditional promise to pay.
QUESTION 8
Which of the following is not a negotiable instrument?
O Traveler's check
O Certified check
OU.S. Dollars
O Note
O Certificate of deposit
QUESTION 9
In the United States, which statement is true regarding the type of currency needed to satisfy the currency requirement for negotiability in the United States?
O U.S. dollars, credit cards and debit cards are the only satisfactory currency.
O U.S. dollars, English pounds, Euros, Japanese yen, gold, silver and apples are all satisfactory currency.
OU.S. dollars is the only satisfactory currency.
O U.S. dollars, English pounds, Euros, and Japanese yen are all satisfactory currency.
OU.S. dollars or gold or silver are the only satisfactory currency.
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