Which of the following statements is true of the monetary aspect of a promise or order in a negotiable instrument?
A) The promise or order in a negotiable instrument must be to pay a fixed amount of money.
B) The requirement of a "fixed amount" in a negotiable instrument applies only to interest and not principal.
C) The amount of any interest payable is not described in the instrument.
D) The amount of principal is calculated by reference to the formula or index referenced in the instrument if a variable rate of interest is prescribed.

Question

Quizplus · Accepted Answer

The promise or order in an instrument must be to pay a fixed amount of money, with or without interest or other charges described in the promise or order. The requirement of a "fixed amount" applies only to principal, and the amount of any interest payable is that described in the instrument.

Which of the Following Statements Is True of the Monetary