A draft made out in the United States calls for payment in German marks. Which of the following statements is correct?
A) The draft is nonnegotiable since it must be paid in German marks.
B) The draft is nonnegotiable because the rate of exchange fluctuates and it will interfere with the requirement that the instrument be payable in a fixed sum of money.
C) The draft is negotiable if it satisfies all the requirements of negotiability under Article 3 of the UCC.
D) The instrument is negotiable only if the exchange rate is written on the draft.
Correct Answer:
Verified
Q1: An instrument "payable to order" is payable
Q3: A draft involves two parties, the drawer
Q4: A promissory note and a certificate of
Q5: A written order by one person directing
Q6: A certificate of deposit is actually a
Q7: One way to classify a negotiable instrument
Q8: Negotiable instruments can be used either as
Q9: A promise to pay $1,000 and a
Q10: The person who issues a check to
Q11: A note or a check payable in
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