Negotiable Instruments Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which of the following is a bill of exchange most similar to?

Question 2 2. A promissory note for a loan amount of $45,000 has monthly payments of $412.37 for 10 years. What is the total amount paid at the end when the loan is paid off?

Question 3 3. For a promissory note with monthly payments and an annual interest rate of 6 percent, what is the monthly interest rate that you need to use in this formula?

Question 4 4. What is the minimum amount of money you must have to purchase a CD?

Question 5 5. Which of the following options defines a bill of exchange?

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Question 6 6. In this formula, what does the r stand for?

Question 7 7. If you purchase a 6-month CD for $10,000 and it pays 1.5% APR, approximately how much interest will you receive as the return on your investment?

Question 8 8. What is the term that means the 'ease of turning an asset into cash' and is what you are giving up when you invest in a CD?

Question 9 9. What does CD stand for?

Question 10 10. Which of the following differentiates a check from a bill of exchange?

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Question 11 11. Which of the following is true regarding a bill of exchange?

Question 12 12. What is the required term of a CD?

Question 13 13. Which of the following statements is NOT true regarding bills of exchange?

Question 14 14. What is the role of a promissory note?

Question 15 15.

Calculate the monthly payments for a promissory note with these terms.

Amount: $40,000

Payment terms: Monthly

Annual interest rate: 3%

Loan due date: 10 years

Negotiable Instruments Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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