Which of the following instruments is NOT a negotiable instrument?
ABill of exchange
BPromissory note
CCheque
DLetter of creditCORRECT
GCECommerceBanking and Finance2023
AI
Toaster Teacher
Why the answer is D, and why the others tempt you.
Negotiable instruments are documents that guarantee payment and can be transferred from one person to another. Cheques, bills of exchange, and promissory notes are all classic examples of negotiable instruments. A letter of credit is a conditional guarantee of payment issued by a bank on behalf of a buyer and is not classified as a negotiable instrument.
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