Type of Paper and Parties

Question 1

Two basic instruments

Answer 1

note and draft

Question 2

Note
(and parties)

Answer 2

Promise to pay money
* maker - promises to pay
* payee - entitled to payment

Question 3

Draft
(and parties)

Answer 3

an order to pay
* drawer - ordering payment
* drawee - making payment
* payee - recieves payment

Question 4

Check

Answer 4

type of draft where
1. bank is drawee
2. instrument is payable on demand