A negotiable instrument is
A)valuable documents that can be pledged as security to another.
B)an instrument that can be given in exchange for a promise of another.
C)an instrument that is used in negotiations.
D)a written promise by a party given in exchange for a promise of another.
E)a written contract containing a promise,express or implied,to pay a specific sum of money to the order of a designated person or to bearer.

Question

Quizplus · Accepted Answer

A negotiable instrument is a written contract containing a promise, express or implied, to pay a specific sum of money to the order of a designated person or to bearer. It is a financial document that can be transferred from one person to another as a means of payment. Examples of negotiable instruments include checks, promissory notes, and bills of exchange. They are commonly used in commercial transactions and can be bought, sold, or transferred like any other asset.

A Negotiable Instrument Is