Fact Pattern 25-3
To borrow the funds to pay tuition at Alpha College, Bea signs an instrument unconditionally promising to pay to "Country Loan Corporation" $7,500 with interest in installments with the final payment due June 1, 2030.
-Refer to Fact Pattern 25-3. The instrument that Bea signed is most likely
A) a certificate of deposit.
B) a draft.
C) an order to pay.
D) a promissory note.

Question

Fact Pattern 25-3
To borrow the funds to pay tuition at Alpha College, Bea signs an instrument unconditionally promising to pay to "Country Loan Corporation" $7,500 with interest in installments with the final payment due June 1, 2030.
-Refer to Fact Pattern 25-3. The instrument that Bea signed is most likely
A) ​a certificate of deposit.
B) ​a draft.
C) ​an order to pay.
D) ​a promissory note.

Quizplus · Accepted Answer

The instrument that Bea signed is a promissory note. It contains an unconditional promise to pay a specific amount with interest in installments, and has a maturity date (June 1, 2030). A certificate of deposit is a type of time deposit, and a draft or order to pay is an instruction to a third party to pay a certain amount to someone else.

Fact Pattern 25-3 To Borrow the Funds to Pay Tuition at Alpha College