Week 4 DQ 1 - Due NLT 1-21
Describe various types of negotiable instruments. Why might a person choose one over the other? What are the financial and regulatory limitations of each negotiable instrument and who can issue negotiable instruments?
Approx. 250-300 words
There are three main types of negotiable instruments. One of them is the draft which is an unconditional order to pay made by the drawer to order another party or the drawee (usually a bank) to pay money to another party which is the payee. A draft can be a check (orders a drawee bank to pay on demand); time draft (payable at a definite time); sight draft (payable upon presentation); or a trade acceptance (seller of items orders the buyer to pay him/her a specific amount at a specific future time). The draft is also known as bill of exchange and this instrument classified as 'order to pay' is preferred by someone who intends to sell or negotiate it with another ...
The solution is composed of 439 words describing the types of negotiable instruments. References are included.