Asked by habibatou diallo on Jul 24, 2024

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X signs a negotiable instrument ordering Y to pay Z the sum of $500. Y is the:

A) maker.
B) drawee.
C) payee.
D) drawer.

Drawee

The party, typically a bank, required to pay the specified amount on a check or draft when it is presented for payment.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.

Maker

The party in a transaction who creates or issues a promissory note, thereby promising to pay a certain sum to a specified person or entity.

  • Acquire knowledge of the positions and obligations of the parties implicated in negotiable instruments, such as the drawer, drawee, payee, and holder in due course.
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SV
sophia vasendenJul 30, 2024
Final Answer :
B
Explanation :
In a negotiable instrument where one party (X) orders another party (Y) to pay a third party (Z) a certain sum, Y is referred to as the drawee, the party directed to pay the money.