QUESTION BATCH 1 NEGOTIAB: STRUMENTS: FO) (D CONTENT ds the draft in Figure 24-2 (p. 419) a time draft or a sight draft? Why? Mitch Cortez, has a checking account at First National Bank. Mitch writes a check ordering First National Bank to-pay “to the order of Mitch Cortez.” Who is the drawer? Who is the drawee? Who is the payee? Is the note in Figure 24-5 (p. 420) a time note or demand note? Why? Which of the following statements, concerning formal requirements for negotiable instruments, is (are) true? In order to be negotiable, the instrument must be written on paper. In order to be negotiable, the instrument must always contain the actual signature of the drawer or maker. In order to be negotiable, the instrument must contain a promise or order to pay. “IOU, Jack Swanson, $500” is a sufficient promise to pay to make the instrument negotiable. Which of the following statement, concerning the formal requirements for negotiable instruments, is (are) true? In order to be negotiable, the instrument must be for a fixed amount. Variable rate mortgages are not negotiable. In order to be negotiable, the instrument must be for legal tender authorized or adopted by a sovereign government as part of its currency. In order to be negotiable, an instrument must contain no other undertaking or instruction.Which of the following statements, concerning the formal requirements for negotiabic instruments, is (are) correct? A promise to pay “$1,000 and my lawnmower” would render the underlying, instrument nonnégotiable. In order to be negotiable, an instrument must be payable on demand or ata definite time. 7 ‘A negotiable instrument that does not specify a payee is construed as payable to bearer. A negotiable instrument that is payable to “cash” is construed as payable to order.