1. Under Revised Article 3, a person is a(n) _____ if she is in possession of an instrument that is payable to bearer or made payable to an identified person and she is that identified person.

payer

issuer

bailor

holder

2. Checks and drafts are:

documents required to evidence the shipment of goods.

documents which detail the transaction between a seller and a buyer.

orders to another person to pay money to a third person.

promises to pay someone money.

3. An instrument that is payable "to cash" can be negotiated simply by giving it to the person to whom you wish to transfer it. True

False

4. In qualified indorsement, the indorser accepts the liability to make the instrument good, if the maker or drawer defaults on it.

True

False

5. Value is identical to simple consideration.

True

False