1. Jocelyn wants to purchase an expensive pontoon boat for her lake parties. The seller is willing to finance eighty percent of the $20,000 purchase price. Jocelyn doesn't have the remaining $4,000, so she borrows it from Chad. Jocelyn signs and dates a promissory note to Chad promising to pay Chad the entire $4,000 within one year of the date Jocelyn signs the note. The note also includes the payment of interest at the same interest rate that will be required by the seller for the $16,000 the seller will finance, to be determined at the time Jocelyn actually purchases the boat. The promissory note from Jocelyn to Chad:

is a negotiable instrument as long as it contains Jocelyn's signature.

is not a negotiable instrument, because it is not for a fixed amount of money.

is a negotiable instrument, because all terms are definite.

is not a negotiable instrument, because it is not payable at a definite time.

2. On May 1, Marie purchases a certificate of deposit (CD) from Carlisle Credit Union for $5,000. The CD states that Carlisle Credit Union will pay the $5,000, along with two percent annual interest, at the end of three years. In this transaction between Marie and Carlisle Credit Union:

Marie is the drawer, and Carlisle Credit Union is the payee.

Marie is the maker, and Carlisle Credit Union is the payee.

Carlisle Credit Union is the maker, and Marie is the payee.

Carlisle Credit Union is the drawer, and Marie is the payee.

3. Evelyn writes a check for $243.28 to Memphis Light Gas & Water to pay her utility bill. The check is drawn on Evelyn's account at First South Bank in Memphis. The check is a draft, a type of negotiable instrument, and:

Memphis Light Gas & Water is the drawee and Evelyn is the drawer.

First South Bank is the drawee and Memphis Light Gas & Water is the drawer.

Evelyn is the drawer and Memphis Light Gas & Water is the payee.

Evelyn is the payee and First South Bank is the drawee.

4. Tia needs $2,500 to pay her tuition and buy books for her upcoming semester at college. Tia asks Marvin to loan her the money and promises to pay him back as soon as she can sell her Mustang convertible, which she has listed on Craigslist. Tia signs a promise to pay that says: "I, Tia, promise to pay Marvin $2,500 within twenty-four hours of the time my Mustang is sold." Tia's written promise to pay Marvin is:

a draft, because the funds are due at a certain time after the Mustang is sold.

not a draft, because it contains a condition.

a draft, because it is an unconditional promise to pay a definite amount.

not a draft, because it is not written with a bank as the drawee.