Which of the following is true about a promissory note?
A) It is always a three-party transaction.
B) It is a promise to pay.
C) The party who makes the promise is the lender.
D) The payee cannot transfer the note to a third party.

Question

Quizplus · Accepted Answer

A promissory note is a written promise to pay a specified amount of money at a certain time, usually with interest. It is a two-party transaction between the borrower (who makes the promise to pay) and the lender (who is entitled to receive payment).

Which of the Following Is True About a Promissory Note