Edie deposits funds with First National Bank, which issues an instrument that promises to repay the funds, with interest, on a certain date. Before the maturity date, Edie wants to access the funds. Edie can
A)submit the instrument to the maker for immediate payment.
B)withdraw the funds before the date of maturity.
C)advance the date for repayment.
D)sell the instrument to a third party.

Question

Quizplus · Accepted Answer

The instrument described sounds like a negotiable instrument, such as a certificate of deposit. Edie cannot unilaterally demand early repayment or advance the repayment date, but she can sell the instrument to a third party to access the funds before the maturity date.

Edie Deposits Funds with First National Bank, Which Issues an Instrument