Which statement about notes and drafts is accurate?
A)With a draft,two people are involved: drawer and drawee.
B)With a note,you order someone else to pay.
C)With a note,two people are involved: maker and payee.
D)With a draft,you make a promise that you will pay.

Question

Quizplus · Accepted Answer

A note involves two people: the maker of the note who promises to pay and the payee who will receive the payment. A draft, on the other hand, involves three people: the drawer who orders someone else to pay, the drawee who is ordered to pay, and the payee who will receive the payment. Therefore, statement C is the only one that accurately describes a note.

Which Statement About Notes and Drafts Is Accurate