Question

Define negotiable instruments in your own words. Provide an example of a negotiable instrument (check, promissory...

Define negotiable instruments in your own words. Provide an example of a negotiable instrument (check, promissory note, dollar bill etc.) and create a drawing or use an existing photo. On the image, label the parts of the negotiable instrument.

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Answer #1

A negotiable instrument is an which entitles the holder of the instrument a certain amount of money. The word negotiable instrument means a document in writing which is transferable and the holder of the negotiable instrument is entitled to certain amount of money. Promissory note can be a good example of negotiable instrument. Promissory note is an instrument where the issuer promises to pay a certain amount to the holder and this note is transferable.

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