Asked by
Emmanuel Balogun
on Nov 27, 2024
Verified
Edie deposits funds with First National Bank, which issues an instrument that promises to repay the funds, with interest, on a certain date. Before the maturity date, Edie wants to access the funds. Edie can
A) submit the instrument to the maker for immediate payment.
B) withdraw the funds before the date of maturity.
C) advance the date for repayment.
D) sell the instrument to a third party.
Maturity Date
The specified date on which the final payment of a loan, bond, or other financial instrument is due.
Repay
To make payment back to someone from whom money has been borrowed.
Withdraw
To remove or retract something, such as funds from a bank account, or to cease participation in an activity or agreement.
- Gain insight into how the negotiability of instruments influences their transferability and legal enforceability.
Verified Answer
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Learning Objectives
- Gain insight into how the negotiability of instruments influences their transferability and legal enforceability.