31. Ewa signs an instrument unconditionally promising to pay to "Sunny State Bank" $5,000 with interest in installments with the final payment due June 1, 2016. The instrument that Ewa signed is most likely

a.	a certificate of deposit.
b.	a draft.
c.	an order to pay.
d.	a promissory note.

32. Ewa signs an instrument unconditionally promising to pay to "Sunny State Bank" $5,000 with interest in installments with the final payment due June 1, 2016. With respect to this instrument, Sunny States Bank is

a.	the drawee.
b.	the drawer.
c.	the maker.
d.	the payee.

33. Rupert owes $5,000 in unpaid taxes. Using the back of an old t-shirt, he executes an instrument for $5,000 that otherwise meets the requirements for negotiability. This instrument is most likely

a.	negotiable.
b.	nonnegotiable, because an instrument must be on paper.
c.	nonnegotiable, because a t-shirt is not sufficiently permanent.
d.	nonnegotiable, because the government does not appreciate it.

34. Gladys, the chief executive officer of Home Electrical, Inc., signs an instrument by using a rubber stamp with her thumbprint on it. This instrument is

a.	negotiable.
b.	nonnegotiable, because a rubber stamp does not identify the signer.
c.	nonnegotiable, because a thumbprint implies a lack of serious intent.
d.	nonnegotiable, because a thumbprint is not a signature.

35. To borrow money to finance the start-up of his business, Buck executes an instrument in favor of City Bank. For the instrument to be negotiable, the signature must be

a.	anywhere on the instrument.
b.	anywhere on the lower half of the instrument only.
c.	in the lower left-hand corner of the instrument only.
d.	in the lower right-hand corner of the instrument only.

36. International Properties, Inc. (IPI), signs an instrument in favor of Financial Investments Corporation that includes the statement "IPI plans to pay this debt from the proceeds of the sale of the IPI Office Building in Montreal." The sale has been completed. This instrument is

a.	negotiable.
b.	nonnegotiable, because banks cannot easily process office buildings.
c.	nonnegotiable, because it refers to a separate sale.
d.	nonnegotiable, because Montreal is in Canada, not the United States.

37. USA Oil Corporation signs an instrument that states it is being executed "as per contract for a purchase of 4,000 barrels of oil dated May 1." This instrument is

a.	negotiable.
b.	nonnegotiable, because information about the sale must be obtained from another source.
c.	nonnegotiable, because it states an express condition to payment.
d.	nonnegotiable, because the terms of the contract are not clear on the face of the instrument.

38. Olena signs a promissory note payable to the order of Payday Loan Company. The note states that it is payable "with interest at the legal rate." The quoted language

a.	does not affect the negotiability of the check.
b.	makes the note nonnegotiable, because the note does not specify a rate of interest.
c.	makes the note nonnegotiable, because the note is payable with interest.
d.	makes the note nonnegotiable, because the exact amount payable cannot be determined from the face of the instrument.

39. On behalf of Equity Capital, Inc., Flip signs an instrument promising to pay $5,000 in gold to Growth Investments, Inc., on May 15. This instrument is

a.	negotiable.
b.	nonnegotiable, because gold is not a medium of exchange authorized or adopted by a government as currency.
c.	nonnegotiable, because it does not recite any consideration.
d.	nonnegotiable, because it is for an amount of $500 or more.

40. Tyrone draws a check payable to "Cash" and presents it to Urban Bank for payment. This instrument is

a.	a bearer instrument.
b.	an order instrument.
c.	valid but nonnegotiable.
d.	void.