A ________ is a three-party instrument that is an unconditional written order by one party that orders a second party to pay money to a third party.
A) draft
B) promissory note
C) certificate of deposit
D) lease

Question

Quizplus · Accepted Answer

A draft is a three-party instrument that orders a second party, typically a bank, to pay money to a third party, typically the beneficiary or payee. The first party, called the drawer, initiates the order and the second party, called the drawee, agrees to pay the stated amount.

A ________ Is a Three-Party Instrument That Is an Unconditional