An instrument that is not payable to a specific payee or indorsee is known as a ________.
A)order paper
B)bearer paper
C)allonge
D)draft

Question

Quizplus · Accepted Answer

Bearer paper is an instrument that is not payable to a specific payee or indorsee. It can be negotiated by delivery alone, without the need for an endorsement. Choice A is incorrect because an order paper is payable to a specific payee or indorsee. Choice C is incorrect as an allonge is a separate piece of paper attached to a negotiable instrument for the purpose of making additional endorsements. Choice D is incorrect as a draft is a type of negotiable instrument that is similar to a check.

An Instrument That Is Not Payable to a Specific Payee