Commercially acceptable documents, such as notes, checks, and drafts, are used to transfer debt from one person to another.

True

False

QUESTION 2

The two basic types of business loans are promises to pay through notes and orders to pay through checks and drafts.

True

False

QUESTION 3

Commercial paper includes checks that banks are ordered to pay and drafts in which a third party is ordered to pay.

True

False

QUESTION 4

The person who makes a promise in a promissory note is called a "drawer".

True

False

QUESTION 5

When the amount of a check expressed in figures does not agree with the amount stated in words, the amount expressed in words is considered the true one.

True

False

QUESTION 6

A certified check is an instrument where the bank has not promised to pay when it is presented for payment, because the bank must receive funds from the drawer's institution before paying.

True

False

QUESTION 7

A cashier's check is drawn against the banks funds.

True

False

QUESTION 8

Forged and raised checks are illegal.

True

False

QUESTION 9

The promise in a note, or the order in a check or draft, must be unconditional.

True

False