Quiz 4 Study Guide Flashcards

1
Q

A person in possession of an instrument

A

Bear

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2
Q

(Negotiable instrument)
A writing drawn in a special form which can be transferred from person to person as a substitute for money or as an instrument of credit

A

Commercial Paper

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3
Q

A written order signed by one person requiring the person to whom addressed to pay a particular sum of money, to order or to bearer, on demand or at a certain time.

A

Draft

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4
Q

The person, company or financial institution ordered to pay a draft

A

Drawee

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5
Q

The person who executes any draft

A

Drawer

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6
Q

One in possession of commercial paper

A

Holder

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7
Q

A person who becomes the holder of a negotiable instrument by endorsement which names him or her as the person to whom the instrument is negotiated

A

Endorsee

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8
Q

The signature or statement of purpose by the owner on the back of a negotiable instrument, which indicates the future control of the instrument.

A

Indorsement

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9
Q

Person who writes his or her name on back of an instrument

A

Endorser

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10
Q

The act of transferring ownership of a negotiable instrument to another party

A

Negotiability (negotiation)

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11
Q

Commercial paper made payable to the order of some named party; the word order or its equivalent must be used

A

Order paper (instrument)

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12
Q

The party to whom any negotiable instrument is made payable

A

Payee

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13
Q

A negotiable instrument containing a promise to pay

A

Promissory note

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14
Q

The transfer of title to goods from the seller to the buyer for a consideration called the price

A

Sale

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15
Q

A check drawn on a bank’s own funds and signed by a responsible bank official

A

Cashier’s check

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16
Q

A check for which the bank assures that the drawer has sufficient funds to make payment

A

Certified check

17
Q

An order by a depositor on the bank to pay a sum of money to a payee

A

Check

18
Q

Having no words other than the signature of the endorser

A

Blank endorsement

19
Q

An endorsement which limits the liability of the endorser

A

Qualified endorsement

20
Q

An endorsement which prevents the use of the instrument for anything except the stated use

A

Restrictive endorsement

21
Q

An endorsement which designates the particular person to whom payment is to be made

A

Special endorsement