To operate practically as a substitute for cash or a credit device, a negotiable instrument must be
A)conditional without the risk of being collectable.
B)transferable without the danger of being uncollectable.
C)qualified with a promise to set aside the qualification.
D)payable without recourse.

Question

Quizplus · Accepted Answer

Negotiable instruments must be transferable and ensure the holder can collect the value promised, making them practical substitutes for cash or credit devices. Options A, C, and D introduce conditions or qualifications that could hinder their function as reliable substitutes.

To Operate Practically as a Substitute for Cash or a Credit