QUIZ 3 9/10 Statement 1. Negotiation and assignment both applies to negotiable instrument. Statement 2. Indorsement is written at the back of the instrument. Select one: a. Statement 1 is false: Statement 2 is true b. Statement 1 is true: Statement 2 is false c. Statement 1 is false: Statement 2 is false d. Statement 1 is true; Statement 2 is true Clear my choice Question 2 Answer saved Marked out of 1.00 Flag question Question text An instrument was transferred from one person to another, however, the transfer does not make the transferee as the holder, it means that there is ___________________. Select one: a. a partial negotiation b. no negotiation c. a negotiation d. no transfer Clear my choice Question 3 Answer saved Marked out of 1.00 Flag question Question text This is the transfer of a negotiable instrument from one person to another made in such a manner as to constitute the transferee the holder Select one: a. Negotiation b. Bank transfer c. Assignment d. Indorsement Clear my choice Question 4 Answer saved Marked out of 1.00 Flag question Question text A ______________ constitutes the indorser a mere assignor of the title to the instrument. It may be made by adding to the indorser's signature the words _____________ or any words of similar import. Select one: a. restrictive indorsement, "without recourse" b. conditional indorsement, "with recourse"

c. qualified indorsement, "without recourse" d. blank indorsement, "with recourse" Clear my choice Question 5 Answer saved Marked out of 1.00 Flag question Question text A __________________ is a signature by the creator of an instrument, such as acheck, which enables any holder of the instrument to assert a claim for payment. Because no payee is specified, such an endorsement essentially turns the instrument into a bearer security. Select one: a. Blankindorsement b. Qualified indorsement c. Restrictive indorsement d. Special indorsement Clear my choice Question 6 Answer saved Marked out of 1.00 Flag question Question text ______________ is subject only to real defenses while assignee is subject to __________________________. Select one: a. A holder in due course, real defenses b. Negotiation, both real and personal defenses c. A holder in due course, both real and personal defenses d. Negotiation, personal defenses Clear my choice Question 7 Answer saved Marked out of 1.00 Flag question Question text Statement 1. A holder in due course is subject only to real defenses while assignee is subject to both real and personal defenses. Statement 2. Negotiation does not make the transferee as the assignee of the instrument while assignment does not make the transferee as the holder of the instrument. Select one: a. Statement 1 is true; Statement 2 is true b. Statement 1 is false: Statement 2 is true c. Statement 1 is true: Statement 2 is false d. Statement 1 is false: Statement 2 is false Clear my choice Question 8

Answer saved Marked out of 1.00 Flag question Question text With this endorsement, the endorser will not assume any responsibility for paying the check if it is returned for any reason. The payee adds words such as "without recourse" to the back of the check.