A(n)________ makes negotiable instruments transferable to a third party.
A) insurance
B) indorsement
C) accommodation
D) trade acceptance

Question

Quizplus · Accepted Answer

Indorsement (also spelled endorsement) is a signature or notation on a negotiable instrument that allows it to be transferred to another party. It signifies the holder's agreement to the terms and conditions of the instrument and makes it legally transferable to a third party. Insurances, accommodations, and trade acceptances are not related to the transferability of negotiable instruments.

A(n)________ Makes Negotiable Instruments Transferable to a Third Party