The transfer of a negotiable instrument by a person other than the issuer to a person who thereby becomes a holder is referred to as a(n) ________.
A) negotiation
B) assignment
C) indorsement
D) insurance

Question

Quizplus · Accepted Answer

A negotiation is the transfer of a negotiable instrument, such as a check or promissory note, from a person other than the issuer to a person who becomes a holder. This transfer can be made by delivery, or by indorsement and delivery. B) assignment refers to a transfer of a non-negotiable instrument or other property, C) indorsement is a specific type of negotiation that involves signing the instrument and transferring it to another person, and D) insurance is not related to the transfer of negotiable instruments.

The Transfer of a Negotiable Instrument by a Person Other