An unconditional written promise made by one person to another, signed by the maker, that promises to pay on demand a specific sum of money to the bearer is a:
A) nonnegotiable draft.
B) bill of exchange.
C) promissory note.
D) certificate of deposit.

Question

Quizplus · Accepted Answer

A promissory note is a written promise to pay a specific sum of money to the bearer or the person specified in the document. It is an unconditional promise made by one person (the maker) to another. It is different from a bill of exchange or draft, which is an order to pay money, and a certificate of deposit, which is a savings instrument issued by a bank.

An Unconditional Written Promise Made by One Person to Another