1.

Commercial paper developed the following needs EXCEPT:

.Move freely and efficiently in financial transactions.

b.Act as a substitute money.

c.Eliminate the need for contractual obligations.

d.Represent a credit transaction.

Chapter: 24.1

Difficulty: 1

Type: Factual

2.

Personal :

.May be asserted against anyone, including a holder in due course.

b.May not be used in a claim involving a negotiable instrument.

c.May not be asserted against a holder in due course.

d.May be asserted only against a party when real defenses are also asserted.

Chapter: 24.1

Difficulty: 2

Type: Conceptual

3.

defenses:

.May be asserted against anyone, except a holder in due course.

b.May be asserted against anyone, including a holder in due course.

c.May only be asserted against banks and other financial institutions.

d.May not be asserted under the Uniform Commercial Code.

Chapter: 24.1

Difficulty: 2

Type: Conceptual

4.

A party who is a "holder in due course" of a negotiable instrument:

.Has title to the instrument, but risks defenses available against the original party to the instrument.

b.Has title to the instrument free and clear of defenses available against the original party to the instrument.

c.Does not have title to the instrument, but is likely to have title to the instrument in the foreseeable future.

d.Is required to wait for a determined period of time before it can present the negotiable instrument to a bank.

Chapter: 24.1

Difficulty: 2

Type: Conceptual

5.

Which of the following is NOT a purpose of negotiable instruments in commerce?

.Represent a credit transaction.

b.Move freely and efficiently in financial transactions.

c.Act as a substitute money.

d.Eliminate the need for contractual obligations.

Chapter: 24.1

Difficulty: 2

Type: Factual

6.

Examples of commercial paper include the following EXCEPT:

.Checks.

b.Negotiable notes.

c.Certificates of deposit.

d.Credit card receipts.

Chapter: 24.2A

Difficulty: 1

Type: Factual

7.

Which of the following are three-party instruments?

.Notes and checks.

b.Checks and CDs.

c.CDs and notes.

d.Checks and bank drafts.

Chapter: 24.2A

Difficulty: 1

Type: Conceptual