Failure by the maker of a promissory note to pay the amount due at maturity is known as
A) Protesting a note
B) Closing a note
C) Dishonouring a note
D) Discounting a note
E) Depreciating a note

Question

Quizplus · Accepted Answer

Dishonouring a note refers to the failure to pay the amount due at maturity of a promissory note. Protesting a note refers to the formal process of recording the dishonour of a note and Discounting a note refers to the process of selling a note for less than face value. Closing a note and Depreciating a note are not relevant terms in this context.

Failure by the Maker of a Promissory Note to Pay