What Is a Promissory Note? - Definition & Example


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question 1 of 3

During the student loan application process, Sandy signed a document that contained the name of the borrower, the name of the lender, the amount borrowed, the interest rate, the date the note was signed, and the first payment due date. This document is known as a:

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1. Which of the following is generally NOT contained in a promissory note?


Regarding promissory notes, are these statements true or false?

1. Sandy learned that promissory notes typically contain repayment terms, whereas IOUs do not.

2. Sandy found out that promissory notes are typically less detailed than a loan contract.

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About This Quiz & Worksheet

This quiz and worksheet combo allow you to assess your understanding of promissory notes and how they differ from other types of agreements such as loan contracts and IOUs. Topics you should be familiar with in order to pass the quiz include the definition of a promissory note and the details of such an agreement.

Quiz & Worksheet Goals

Utilize this quiz and worksheet set to gauge your knowledge of:

  • Differences between a promissory note and an IOU
  • Definition of a promissory note
  • Details included in a promissory note
  • Differences between a loan contract and a promissory note

Skills Practiced

Practice these following skills as you complete the quiz and worksheet:

  • Reading comprehension - ensure that you draw the most important information about the details included within a promissory note from the related lesson
  • Distinguishing differences - compare and contrast topics from the lesson, such as promissory notes and IOUs
  • Information recall - access the knowledge you've gained regarding IOUs and loan contracts

Additional Learning

To learn more about promissory notes, visit the lesson titled What Is a Promissory Note? - Definition & Example. It covers these following objectives:

  • Identify a situation where a promissory note may be used
  • Define the term promissory note
  • Recognize the parts of a promissory note
  • Understand the differences between a promissory note, a loan contract, and an IOU