Asked by keith sanders on Jun 29, 2024
Verified
Which of the following is bearer paper?
A) A check payable to the order of X and specially indorsed to Y.
B) A check payable to the order of X.
C) A check payable to the order of cash and specially indorsed by the person who received it.
D) A check payable to the order of cash and delivered to Y.
Bearer Paper
A negotiable instrument or security not registered in the owner's name and thus payable to the holder or presenter.
Specially Indorsed
A check or negotiable instrument that has been endorsed (signed on the back) and specifies the person to whom or to whose order the instrument is payable.
Order of Cash
The prioritization or sequence in which cash transactions are processed or recorded.
- Identify the distinctions between order paper and bearer paper, focusing on their negotiation methods.
Verified Answer
MP
Matthew PerkinsJul 01, 2024
Final Answer :
D
Explanation :
If an instrument is payable "to bearer" or "to cash," it is called bearer paper.It can be negotiated by giving it to the person to whom you wish to transfer it.No indorsement is necessary to negotiate an instrument payable to bearer.
Learning Objectives
- Identify the distinctions between order paper and bearer paper, focusing on their negotiation methods.