Belinda asks Jordan to explain what an example of a negotiable instrument is for their upcoming test. Which of the following should Jordan tell Belinda are examples of negotiable instruments?

A) Checks only
B) Drafts and checks only
C) Promissory notes only
D) Promissory notes and certificates of deposits, but not checks or drafts
E) Checks, drafts, certificates of deposit, and promissory notes

Negotiable Instruments

Financial instruments that are transferable from one party to another, typically including checks, promissory notes, and bills of exchange.

Checks

Checks are written, dated, and signed instruments that direct a bank to pay a specific amount of money from the writer's account to the person or entity in whose name the check has been issued.

Drafts

Written orders by one party (the drawer) to another (the drawee) to pay a specific amount of money to a third party (the payee) on demand or at a specified future date.