1. A check that a drawee bank guarantees will be paid to the holder is a:

A. bank draft.

B. traveler's check.

C. certified check.

D. treasurer's check.

2. Lillian Fey purchases a night table from Aretha Boyner. Aretha wants Lillian to pay her by check before delivering the night table to Lillian's house. Lillian decides to attach an indorsement that reads, "Pay to Aretha Boyner if she delivers her night table to me, Lillian Fey, at 16 Holmes RD." This is an example of ____.

A.

an indorsement for deposit

B.

a conditional indorsement

C.

a qualified indorsement

D. a significant indorsement

3. To which type of transaction does the negative option rule apply?

	A.	Subscription to CD or DVD clubs
	B.	Buying used cars
	C.	Subscription to telephone services
	D.	Buying goods via telephone or Internet