QUESTION 1

1. What commercial paper involves only two parties?

   		A check
   		A draft
   		A promissory note
   		A contract

1 points

QUESTION 2

1. Pam wrote a check payable to MCCs bookstore. Which of the following best describes Pam?

   	A.	Drawer
   	B.	Drawee
   	C.	Maker
   	D.	Payee

1 points

QUESTION 3

1. What is true about a check and a cashiers check?

   	A.	With a check the drawer is the bank; with a cashiers check the drawer is a cashier employed at a bank or convenience store.
   	B.	The check is an example of commercial paper; the cashiers check is not.
   	C.	A check does not have an accommodation party on it; a cashiers check has an accommodation party.
   	D.	With a check the drawee is the bank; with the cashiers check both the drawer and the drawee are the bank.

1 points

QUESTION 4

1. True or false: A check made payable to cash is negotiable.

   True

   False

1 points

QUESTION 5

1. If you accept a check, which of the following would you most like to be?

   	A.	A holder
   	B.	A holder in due course
   	C.	A bearer
   	D.	An indorsee.

1 points

QUESTION 6

1. The method used for negotiating commercial paper is determined by which of the following?

   	A.	The type of indorsement on the paper.
   	B.	Whether the payee is an individual or a corporation.
   	C.	Whether the instrument is a draft or promissory note.
   	D.	Whether the instrument is order paper or bearer paper.

1 points

QUESTION 7

1. Assume that Jay Leno indorsed a check on the reverse side as follows, For deposit only, Jay Leno. Which of the following describes this indorsement?

   	A.	Blank indorsement
   	B.	Special indorsement
   	C.	Qualified indorsement
   	D.	Restrictive indorsement

1 points

QUESTION 8

1. Assume Jay Leno indorsed instead as follows, Payable to Jimmy Kimmel, Jay Leno. What type of indorsement is that?

   	A.	Blank
   	B.	Special
   	C.	Qualified
   	D.	Restrictive

1 points

QUESTION 9

1. How could Jimmy Kimmel negotiate the instrument?

   	A.	Indorse and deliver the instrument.
   	B.	Deliver it without indorsing.
   	C.	Either indorse and deliver, or just deliver.

1 points

QUESTION 10

1. Which of the following is a defense that, if known to a holder, will defeat him/her from becoming a holder in due course?

   	A.	The instrument is overdue
   	B.	The instrument is bearer paper
   	C.	The instrument is indorsed twice