Negotiability gives commercial paper a high degree of marketability and commercial utility by allowing it to be freely transferable and enforceable by a holder in due course.

Question

Quizplus · Accepted Answer

Negotiability is a key feature of commercial paper that allows it to be easily transferable from one party to another and enforceable by a holder in due course. This feature makes commercial paper highly marketable and useful in commercial transactions.

Negotiability Gives Commercial Paper a High Degree of Marketability and Commercial