Which of the following statements in regard to the "fixed amount" requirement for negotiable instruments is false?
A)If a variable rate of interest is prescribed,the amount of interest is calculated by trade standards.
B)The requirement of a "fixed amount" applies only to principal.
C)If the description of the interest in the instrument does not allow the amount of interest to be ascertained,then interest is payable at the judgment rate in effect at the time interest first accrues.
D)Interest may be stated in the instrument as a fixed or variable amount of money.

Question

Quizplus · Accepted Answer

The promise or order in an instrument must be to pay a fixed amount of money,with or without interest or other charges described in the promise or order.The requirement of a "fixed amount" applies only to principal;the amount of any interest payable is that described in the instrument.Interest may be stated in an instrument as a fixed or variable amount of money or it may be expressed as a fixed or variable rate or rates.If a variable rate of interest is prescribed,the amount of interest is calculated by reference to the formula or index referenced in the instrument.If the description of interest in the instrument does not allow the amount of interest to be ascertained,then interest is payable at the judgment rate in effect at the place of payment at the time interest first accrues [3-112].

Which of the Following Statements in Regard to the "Fixed