Asked by Bryan Raffael on May 30, 2024

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What is the difference between a demand instrument and a time instrument?

Demand Instrument

A financial document, like a check or promissory note, that is payable on demand or presentation.

Time Instrument

A financial document that specifies payment to be made at a future date.

  • Elucidate the factors that impact the transferability of a financial document.
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NAKYRA PROPHET SMITHJun 04, 2024
Final Answer :
With a demand instrument, the payee (or subsequent holder) can demand actual payment at any time. With a time instrument, payment can be made only at a specific time designated in the future.