Fact Pattern 24-2B
Ewa signs an instrument unconditionally promising to pay to "Sunny State Bank" $5,000 with interest in installments with the final payment due June 1,2013.
-Refer to Fact Pattern 24-2B.The instrument that Ewa signed is most likely
A)a certificate of deposit.
B)a draft.
C)an order to pay.
D)a promissory note.

Question

Fact Pattern 24-2B 
Ewa signs an instrument unconditionally promising to pay to "Sunny State Bank" $5,000 with interest in installments with the final payment due June 1,2013.
-Refer to Fact Pattern 24-2B.The instrument that Ewa signed is most likely
A)a certificate of deposit.
B)a draft.
C)an order to pay.
D)a promissory note.

Quizplus · Accepted Answer

The fact pattern describes a promise to pay a specified amount with interest in installments, which fits the definition of a promissory note. A certificate of deposit is a type of time deposit, a draft is an order to pay, and an order to pay is typically associated with a letter of credit or a bill of exchange, which do not fit the facts presented in the scenario.