The transfer of a negotiable instrument in such a manner that the transferee becomes a holder is known as:
A) indorsement.
B) negotiation.
C) assignment.
D) accommodation.

Question

Quizplus · Accepted Answer

Negotiation is the process by which a negotiable instrument is transferred from one party to another in such a way that the transferee becomes the holder of the instrument. This process typically involves the endorsement of the instrument by the holder and delivery to the transferee.

The Transfer of a Negotiable Instrument in Such a Manner