Exam 12: Financing

A bill involved in a draft transaction is considered a note ________.

Which of the following definitions describes a drawee to a bill of exchange?

The transfer of all or some of the rights under a contract is called a(n) ________.

In a promissory note, the party who promises to pay is called the payee.

A promissory note differs from a bill of exchange in that a promissory note ________.

Any reference to some other agreements in a note would make it non-negotiable.

Which of the following financial institutions of the World Bank provides funds to private companies?

Barter is an example of a countertrade.

Which of the following is a similarity between a qualified endorsement and an endorsement prohibiting further endorsement under the ULB?

What are the consequences of not obtaining a letter of credit?

A bill of exchange is an unconditional written order.

A ________ is an instrument issued by a bank or another person at the request of an account party that obliges the issuer to pay to a beneficiary a sum of money within a certain period of time upon the beneficiary's presentation of documents specified by the account party.

To be negotiable, a bill or note must contain a promise by the drawer to make payment.

A bill of exchange that is payable at a definite future time is known as a sight bill.

In a trade acceptance, the drawer is ordered to pay a specified sum of money to the drawee.

Describe the unconditionality feature of a bill or note.

According to common law, which of the following is true of payment in a negotiable instrument?

A drawee of a bill who, by signing the bill on its face, agrees to pay the bill when it is due is referred to as a(n) ________.

Describe the two major rules that limit a maker's excuse not to pay for forged instruments.

In a draft transaction, if the drawee is a bank, then the draft is referred to as a ________.