- 1 Marks
Question
Which of the following is NOT a negotiable instrument?
A. Credit card
B. Dividend warrants
C. Treasury bills
D. Traveller’s cheques
E. Bearer bonds
Answer
A. Credit card
Explanation:
Credit cards are not negotiable instruments, as they are a means of borrowing funds, not transferring a negotiable claim on a bank or another party. Negotiable instruments include tools like treasury bills, traveller’s cheques, and bearer bonds, which are transferable and entitle the holder to a certain value.
- Tags: Credit Cards, Financial Transactions, Negotiable Instruments
- Level: Level 1
- Topic: Negotiable Instruments
- Series: NOV 2012
- Uploader: Theophilus