X signs a negotiable instrument ordering Y to pay Z the sum of $500.Y is the:
A)drawee.
B)maker.
C)payee.
D)drawer.

Question

Quizplus · Accepted Answer

The drawee is the party who is ordered to pay the specified amount on the negotiable instrument, and in this case, it is Y. The maker is the party who creates and signs the instrument, which is not mentioned in the scenario. The payee is the designated recipient of the payment, which is Z in this case. The drawer is the party who issues the instrument and orders the payment to be made to the payee, which is not mentioned in the scenario. Therefore, the best choice is A, as Y is the drawee.

X Signs a Negotiable Instrument Ordering Y to Pay Z