Thalia signs an instrument unconditionally promising to pay to "Union Bank" $7500 with interest in installments with the final payment due June 1,2017.
-Refer to Fact Pattern 23-3. The instrument that Thalia signed is most likely
A)a certificate of deposit.
B)a draft.
C)an order to pay.
D)a promissory note.

Question

Quizplus · Accepted Answer

The instrument that Thalia signed is a promissory note because it is an unconditional promise to pay a certain amount of money with interest in installments, and it has a final payment due date. Certificates of deposit are a type of savings account, drafts are orders to pay from one person to another, and orders to pay are typically issued by one party to another as a form of payment.

Thalia Signs an Instrument Unconditionally Promising to Pay to "Union