Failure by a promissory note's maker to pay the amount due at maturity is known as:
A) Protesting a note.
B) Closing a note.
C) Dishonoring a note.
D) Discounting a note.
E) Depreciating a note.

Question

Quizplus · Accepted Answer

Dishonoring a note refers to the failure of the maker of a promissory note to pay the amount due at maturity. The other options do not accurately describe this situation - protesting a note typically involves a formal declaration of non-payment, closing a note is not a common term in this context, discounting a note refers to the process of obtaining funds for a note before maturity, and depreciating a note generally refers to a decrease in the value of an asset over time, which is not applicable in this case.

Failure by a Promissory Note's Maker to Pay the Amount