Which of the following is not a negotiable instrument?
A) Check
B) Note
C) Letter of credit
D) Certificate of deposit
E) Draft

Question

Quizplus · Accepted Answer

A letter of credit is not considered a negotiable instrument because it is a document issued by a bank guaranteeing a buyer's payment to a seller, rather than a promise to pay or an order to pay a certain amount of money to a person in possession of the document, which is the characteristic of negotiable instruments like checks, notes, certificates of deposit, and drafts.

Which of the Following Is Not a Negotiable Instrument