A check is bearer paper if it:
A) is made payable "to cash."
B) can be transferred only by indorsement.
C) can be negotiated only by indorsement.
D) is payable to the order of a specific person.

Question

Quizplus · Accepted Answer

A check that is payable to the order of a specific person is known as "order paper." Order papers can be negotiated or transferred only by indorsement. A check payable "to bearer" or "to cash" is known as "bearer paper"; it can be negotiated or transferred without indorsement.

A Check Is Bearer Paper If It