Which of the following would be a bearer instrument?
A)A check payable to "cash."
B)A check that says "pay to the order of John Jones."
C)A check that says "pay to the order of bearer."
D)Two of the above, (a) and (c).

Question

Quizplus · Accepted Answer

A bearer instrument is a financial document that is negotiable and does not require endorsement by the original payee. A check payable to "cash" and a check that says "pay to the order of bearer" are both examples of bearer instruments. A check that says "pay to the order of John Jones" requires endorsement by John Jones and is therefore not a bearer instrument.

Which of the Following Would Be a Bearer Instrument