Scott presents an instrument that states "pay to the order of Scott" to Town Bank for payment.This instrument is the most common type of negotiable instrument,which is
A)a commercial wire transfer.
B)a check.
C)a note.
D)a substitute check.

Question

Quizplus · Accepted Answer

The instrument presented by Scott is a check, which is the most common type of negotiable instrument used for payments. A commercial wire transfer (A) is not a negotiable instrument, but rather an electronic transfer of funds between two bank accounts. A note (C) is a written promise to pay a certain amount of money at a specified time, which can also be negotiable, but it is not the most common type of negotiable instrument used for payments. A substitute check (D) is a paper reproduction of a check, used for electronic processing, but it is not a distinct type of negotiable instrument.

Scott Presents an Instrument That States "Pay to the Order