Steel Mill Inc. signs an instrument that states with certainty a fixed amount to be paid at the time the instrument is payable. This ensures that
A)the value of the instrument can be determined with clarity.
B)interest may be payable at a fixed or variable rate.
C)the amount may be determined by information not in the instrument.
D)the amount payable can fluctuate as a result of market conditions.

Question

Quizplus · Accepted Answer

The instrument's value can be determined with clarity because it states a fixed amount to be paid at a specific time, ensuring certainty in its valuation.