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Flashcards in Chapter 25 Deck (14)
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1

a signed writing or electronic record that contains an unconditional promise or order to pay an exact amount either on demand or at a specific future time

negotiable instrument

2

What are the 2 classifications of negotiable instruments

orders to pay, and promises to pay

3

the first delivery of an instrument by the maker or drawer

issue

4

an unconditional written order that involves three parties

draft

5

what are the three parties in a draft

drawer, drawee, and payee

6

is a payable at a definite future time

time draft

7

is payable on sight

sight draft

8

is the drawees written promise to pay the draft when it comes due

acceptance

9

the seller of the goods is both the drawer and the payee

trade acceptance

10

when a draft orders the buyers bank to pay it is a

banker's acceptance

11

common type of draft where the writer is the drawer the bank is the drawee and the person whom the check is made payable is the payee

check

12

is a written promise made by one person to pay another

promissory note

13

what does it mean that promissory notes are commonly assigned

the assignment of a note does not affect the makers obligation to pay

14

type of note issued when one party deposits funds with a bank and the bank promises to repay the funds with interest on a certain date

certificate of deposit