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Which of the Following Statements Is TRUE with Respect to Negotiable

Question 7

Multiple Choice

Which of the following statements is TRUE with respect to negotiable instruments?


A) Technically speaking, there are only three types of negotiable instruments: cheques, bills of exchange, and promissory notes.
B) The Bills of Exchange Act applies to every type of negotiable instrument.
C) Unlike most contracts, a negotiable instrument is effective only if it is written and signed.
D) A negotiable instrument is valid as long as it provides a mechanism that the drawer can use to determine how much the payee is entitled to receive.
E) A negotiable instrument is effective only if it contains a conditional obligation to pay money.

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