BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An instrument bearing a bank’s written acknowledgment of the receipt of money, together with an unconditional promise to repay it at a definite future time.
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Collateral Note
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Certificate of Deposit
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Promissory Note
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Honor Note
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Explanation:
Detailed explanation-1: -A promissory note is a financial instrument that contains a written promise by one party (the note’s issuer or maker) to pay another party (the note’s payee) a definite sum of money, either on demand or at a specified future date.
Detailed explanation-2: -(j) “Certificate of deposit” means an instrument containing an acknowledgment by a bank that a sum of money has been received by the bank and a promise by the bank to repay the sum of money. A certificate of deposit is a note of the bank.
Detailed explanation-3: -(1) A “negotiable instrument” means a promissory note, bill of exchange or cheque payable either to order or to bearer.
There is 1 question to complete.