David borrows $2,000 from Matthew and gives him a promissory note.Matthew is the:
A)payee.
B)payor.
C)maker.
D)drawer.

Question

Quizplus · Accepted Answer

The payee is the person or entity to whom the promissory note is payable, in this case, Matthew. The payor is the person who is making the promise to pay, but in this case, David is the borrower. The maker is the person who is creating the note and making the promise to pay, which is also David. The drawer is typically used in reference to checks, not promissory notes.

David Borrows $2,000 from Matthew and Gives Him a Promissory