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NEGOTIABLE INSTRUMENTSQUIZ11. Statement 1. A negotiable instrument is considered as a substitute for money.Statement 2. A negotiable instrument is considered as a legal tender.- Statement 1 is true: Statement2 is false2. When all the rights of action under the instrument are completely extinguished. The instrument issaid to be-dischargedStatement 1. The Negotiable Instruments Law applies to all commercial papers.Statement 2. The Negotiable Instruments Law applies to checks.-Statement 1 is true; Statement 2 istrue3. A ____________________ is a bill of exchange drawn on a bank payable on demand.-check4. Statement 1. The Negotiable Instruments Law of the Philippines was based on the Uniform StateLaws in the United States.Statement 2.The Negotiable Instrument Law was published on March 4, 2011.- Statement 1 is true:Statement 2 is false5. A _____________ is an instrument issued by a lender in exchange for an article pledged, bearingparticulars of the loan. This instrument has limited negotiability.-pawn ticket6. Statement 1. A certificate of deposit can be considered as a negotiable instrument.Statement 2. A bill of lading is a negotiable instrument.--Statement 1 is false: Statement 2 is false7. A ______________ is the physical piece of paper representing ownership in a company.-certificateof stock8. A ____________ is an unconditional order in writing addressed by one person to another signed bythe person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed ordeterminable future time a sum certain in money to order or to bearer. This is a form of negotiableinstrument.-bill of exchange9. Which of the following is covered by the Law on Negotiable Instrument-Trust Receipt10. A ____________ is an unconditional order in writing addressed by oneperson to another signed by the person giving it, requiring the person towhom it is addressed to pay on demand or at a fixed or determinablefuture time a sum certain in money to order or to bearer. This is a form ofnegotiable instrument.