Keanu presents an instrument that states “pay to the order of Laura” to Mega Bank for payment. This instrument is the most common type of negotiable instrument, which is
A) a certificate of deposit.
B) a check.
C) a note.
D) a payment via a mobile device.

Question

Quizplus · Accepted Answer

The most common type of negotiable instrument is a check, which is a written order to pay a specific amount of money to a named person or entity. Choice A (a certificate of deposit) is not a negotiable instrument because it represents a deposit with a bank and cannot be transferred to a third party. Choice C (a note) is a negotiable instrument, but it is less common than a check and represents a promise to pay a specific amount of money at a future date. Choice D (a payment via a mobile device) is not a negotiable instrument, but rather a method of transmitting funds electronically.

Keanu Presents an Instrument That States “Pay to the Order