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STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ29—1ȱQUIZȱ
LegalȱConceptsȱ
Directions:ȱInȱtheȱAnswersȱcolumn,ȱwriteȱtheȱletterȱfromȱColumnȱ1ȱthatȱrepresentsȱ
theȱwordȱorȱphraseȱthatȱmatchesȱtheȱstatementȱinȱColumnȱ2.ȱ
ȱColumnȱ1ȱȱColumnȱ2ȱAnswersȱ
ȱȱ 1.ȱPartyȱorderedȱtoȱpayȱaȱdraftȱ1. _______ ȱ
ȱȱ 2.ȱInstructionȱthatȱdirectsȱaȱbankȱnotȱtoȱȱ 2. _______ ȱ
payȱaȱcheckȱthatȱhasȱbeenȱlostȱorȱstolenȱ
ȱȱ 3.ȱPartyȱtoȱwhomȱcommercialȱpaperȱisȱȱ 3. _______ ȱ
madeȱavailableȱ
ȱȱ 4.ȱUnconditionalȱwrittenȱorderȱbyȱoneȱȱ 4. _______ ȱ
personȱthatȱdirectsȱanotherȱpersonȱtoȱpayȱ
moneyȱtoȱaȱthirdȱpersonȱ
ȱȱ 5.ȱTypeȱofȱdraftȱbyȱwhichȱaȱbankȱdepositorȱȱ 5. _______ ȱ
ordersȱtheȱbankȱtoȱpayȱmoney,ȱusuallyȱtoȱ
theȱorderȱofȱaȱthirdȱpartyȱorȱtoȱtheȱbearerȱofȱ
theȱinstrumentȱ
ȱȱ 6.ȱPersonȱwhoȱexecutesȱorȱdrawsȱtheȱdraftȱȱ 6. _______ ȱ
andȱordersȱpaymentȱtoȱbeȱmadeȱ
A.ȱdrawerȱ
B.ȱmakerȱ
C.ȱacceptanceȱ
D.ȱdishonorȱ
E.ȱcheckȱ
F.ȱcommercialȱȱ
ȱpaperȱ
G.ȱdraweeȱ
H.ȱstopȬpaymentȱȱ
ȱorderȱ
I.ȱpayeeȱ
J
.ȱbillȱofȱȱ
ȱexchangeȱ
ȱȱ 7.ȱTheȱdrawee’sȱpromiseȱtoȱpayȱtheȱdraftȱȱ 7. _______ ȱ
whenȱdueȱ
ȱȱ 8.ȱUnconditionalȱwrittenȱordersȱorȱpromisesȱȱ 8. _______ ȱ
toȱpayȱmoneyȱ
ȱȱ 9.ȱToȱrefuseȱtoȱpayȱwhenȱdueȱ9. _______ ȱ
ȱȱ 10.ȱPersonȱwhoȱexecutesȱaȱpromissoryȱȱ 10._______ ȱ
noteȱ
LegalȱApplicationȱ
11.ȱAdamȱThistlewaiteȱgaveȱaȱ$500ȱcheckȱtoȱhisȱsonȱatȱhisȱcollegeȱgraduation.ȱHisȱ
sonȱputȱtheȱcheckȱinȱaȱbriefcaseȱalongȱwithȱseveralȱotherȱcards.ȱHeȱlaterȱdiscovȬ
eredȱthatȱtheȱcheckȱwasȱmissing.ȱAdamȱcalledȱhisȱbankȱandȱaskedȱthemȱtoȱstopȱ
paymentȱonȱtheȱcheck.ȱWhenȱAdamȱreceivedȱhisȱmonthlyȱbankȱstatement,ȱtheȱ
missingȱcheckȱwasȱenclosed.ȱItȱhadȱbeenȱcashedȱthreeȱweeksȱafterȱAdam’sȱcall.ȱ
ShouldȱAdamȱorȱtheȱbankȱbearȱtheȱloss?ȱExplainȱyourȱanswer.ȱ
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ29—1ȱPRACTICEȱACTIVITYȱ
Readȱtheȱfollowingȱcasesȱandȱanswerȱtheȱquestionsȱaboutȱthem.ȱAttachȱaȱpageȱifȱadditionalȱ
spaceȱisȱneededȱforȱanswers.ȱ
ȱ
1.ȱKalbeȱsignedȱaȱcheckȱforȱ$7,260ȱdrawnȱonȱherȱaccountȱatȱPulaskiȱStateȱBank.ȱTheȱ
checkȱwasȱstolenȱandȱcashedȱatȱaȱFloridaȱbank.ȱPulaskiȱBankȱreceivedȱtheȱcheckȱ
shouldȱnotȱhaveȱpaidȱtheȱcheckȱifȱtheȱfundsȱwereȱnotȱinȱtheȱaccount.ȱWillȱKalbe’sȱ
argumentȱkeepȱherȱfromȱbeingȱliable?ȱExplain.ȱ[PulaskiȱStateȱBankȱv.ȱKalbe,ȱ364ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
2.ȱDuringȱaȱ1987ȱvisitȱtoȱtheȱBahamas,ȱGeorgeȱAubinȱofȱTexas,ȱaȱfrequentȱgambler,ȱ
visitedȱCableȱBeachȱHotelȱandȱCasino,ȱownedȱbyȱCarnivalȱLeisure.ȱAfterȱlosingȱ
allȱtheȱmoneyȱheȱbroughtȱwithȱhim,ȱGeorgeȱaskedȱforȱandȱreceivedȱ$25,000ȱsoȱ
markers,ȱGeorgeȱdidȱnotȱhaveȱtheȱmoneyȱinȱtheȱbankȱandȱitȱwasȱnotȱthereȱwhenȱ
CarnivalȱpresentedȱtheȱdraftȱtoȱGeorge’sȱbank.ȱCarnivalȱsuedȱforȱrepaymentȱofȱ
theȱdebt.ȱWillȱGeorgeȱbeatȱtheȱhouseȱandȱnotȱhaveȱtoȱpay?ȱExplain.ȱ[CarnivalȱLeiȬ
Chapter 29 Commercial Paper
7-2
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ29—1ȱRETEACHȱ
ȱ
Directions:ȱMakeȱaȱbingoȱsheetȱforȱeachȱstudentȱwithȱfourȱrowsȱandȱfourȱcolumnsȱasȱshown.ȱ
Writeȱoneȱtermȱinȱeachȱspaceȱandȱleaveȱoneȱspaceȱopenȱforȱaȱfreeȱspace.ȱMakeȱtheȱpositionȬ
ingȱofȱtheȱtermsȱdifferentȱonȱeachȱstudent’sȱsheet.ȱToȱsaveȱtime,ȱgiveȱtheȱstudentsȱblankȱbinȬ
goȱsheetsȱandȱletȱthemȱwriteȱtheȱtermsȱinȱtheȱspaces.ȱAsȱeachȱdefinitionȱisȱread,ȱtheȱstudentsȱ
shouldȱcoverȱtheȱappropriateȱterm.ȱIfȱaȱstudentȱcoversȱanȱincorrectȱterm,ȱheȱorȱsheȱmustȱreȬ
moveȱthatȱbingoȱchip.ȱTheȱgameȱcontinuesȱuntilȱaȱstudentȱcoversȱfourȱtermsȱinȱaȱhorizontal,ȱ
vertical,ȱorȱdiagonalȱrow.ȱ
ȱ
drawerȱcheckȱpayeeȱhonorȱ
makerȱcommercialȱȱ
[FreeȱSpace]ȱcertificateȱofȱdeȬ
orderȱ
ȱ
Definitionsȱtoȱreadȱtoȱstudentsȱinȱanyȱorder:ȱ
ȱ
Anȱunconditionalȱwrittenȱpromiseȱbyȱaȱpersonȱorȱpersonsȱtoȱpayȱmoneyȱ
accordingȱtoȱtheȱpayee’sȱorderȱorȱtoȱpayȱmoneyȱtoȱtheȱbearerȱofȱtheȱinȬ
strumentȱ
promissoryȱnoteȱ
Anȱinstructionȱthatȱdirectsȱaȱbankȱnotȱtoȱpayȱaȱcheckȱthatȱhasȱȱ
beenȱlostȱorȱstolenȱ
stopȬpaymentȱorderȱ
Aȱpartyȱtoȱwhomȱcommercialȱpaperȱisȱmadeȱavailableȱpayeeȱ
Chapter 29 Commercial Paper 7-3
ȱLESSONȱ29—1ȱENRICHMENTȱ
Inȱthisȱlesson,ȱyouȱlearnedȱaboutȱvariousȱtypesȱofȱcommercialȱpaper—unconditionalȱ
writtenȱordersȱorȱpromisesȱtoȱpayȱmoney.ȱFourȱimportantȱexamplesȱareȱdrafts,ȱ
checks,ȱpromissoryȱnotes,ȱandȱcertificatesȱofȱdeposit.ȱToȱlearnȱmoreȱaboutȱtheseȱdifȬ
ferentȱformsȱofȱcommercialȱpaper,ȱcheckȱwithȱaȱbankȱinȱyourȱcommunity,ȱandȱobȬ
tainȱtheȱanswersȱtoȱtheȱquestionsȱbelow.ȱ
ȱ
1.ȱWhatȱareȱtheȱvariousȱtypesȱofȱcheckingȱaccountsȱavailableȱatȱtheȱbank?ȱAreȱacȬ
countsȱavailableȱwithȱvariousȱminimumȱlevels?ȱDoȱsomeȱtypesȱofȱaccountsȱpayȱ
moreȱinterestȱthanȱothers?ȱWhatȱfeesȱareȱinvolvedȱifȱyouȱoverdrawȱyourȱacȬ
count?ȱAreȱthereȱanyȱotherȱfeesȱthatȱcouldȱbeȱincurredȱwithȱaȱcheckingȱaccount?ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
2.ȱHowȱwouldȱyouȱinstructȱaȱbankȱtoȱissueȱaȱstopȬpaymentȱorderȱonȱaȱspecificȱ
check?ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
3.ȱDoesȱtheȱbankȱrequireȱthatȱaȱborrowerȱofferȱsomeȱtypeȱofȱpersonalȱorȱrealȱpropȬ
ertyȱasȱsecurityȱbeforeȱlendingȱmoneyȱforȱaȱpromissoryȱnote?ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
4.ȱWhatȱareȱtheȱcurrentȱinterestȱratesȱforȱcertificatesȱofȱdepositsȱ(CDs)ȱofȱvaryingȱ
lengthsȱofȱmaturity?ȱWhatȱsortȱofȱpenaltyȱwouldȱyouȱreceiveȱifȱyouȱwithdrewȱ
yourȱfundsȱbeforeȱmaturity?ȱ
Chapter 29 Commercial Paper
7-4
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ29—2ȱQUIZȱ
Directions:ȱFillȱinȱtheȱblank(s)ȱwithȱtheȱmostȱappropriateȱtermȱorȱphraseȱtoȱcompleteȱ
theȱsentence.ȱ
ȱ
Answersȱ
ȱȱ1.ȱ ȱȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱareȱspecializedȱtypesȱofȱcommercialȱȱȱ
paperȱusedȱinȱinternationalȱtransactions.ȱ
ȱȱ1.__________________ȱ
ȱȱ2.ȱAȱdraftȱdrawnȱbyȱaȱbankȱonȱfundsȱthatȱitȱhasȱȱȱ
onȱdepositȱatȱanotherȱbankȱisȱa(n)ȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱcheck.ȱ
ȱȱ2.__________________ȱ
ȱȱ3.ȱAȱpersonalȱcheckȱthatȱhasȱbeenȱacceptedȱbyȱaȱȱ ȱȱ
bankȱbeforeȱpaymentȱisȱa(n)ȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱcheck.ȱ
ȱȱ3.__________________ȱ
ȱȱ4.ȱ ȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱlettersȱofȱcreditȱareȱusedȱinȱtransacȬȱ ȱȱ
tionsȱinvolvingȱtheȱsaleȱofȱgoods.ȱ
ȱȱ4.__________________ȱ
ȱȱ5.ȱAȱpersonȱmayȱfearȱthatȱaȱbankȱwillȱnotȱhonorȱaȱȱ ȱȱ
checkȱbecauseȱofȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱinȱtheȱdrawer’sȱaccount.ȱ
ȱȱ5.__________________ȱ
ȱȱ6.ȱ ȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱlettersȱofȱcreditȱareȱusedȱtoȱguaranteeȱthatȱaȱ
partyȱwillȱfulfillȱmonetaryȱobligationsȱinvolvingȱconȬ
struction,ȱservice,ȱorȱsalesȱcontracts.ȱ
ȱȱ6.__________________ȱ
ȱȱ7.ȱAȱcheckȱthatȱaȱbankȱdrawsȱonȱitselfȱisȱa(n)ȱȱ ȱȱ
ȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱcheck.ȱ
ȱȱ7.__________________ȱ
ȱȱ8.ȱA(n)ȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱisȱaȱdraftȱissuedȱbyȱaȱpostȱoffice,ȱȱ ȱȱ
bank,ȱexpressȱcompany,ȱorȱtelegraphȱcompanyȱforȱ
useȱinȱpayingȱorȱtransferringȱfundsȱforȱtheȱpurchaser.ȱ
ȱȱ8.__________________ȱ
ȱȱ9.ȱA(n)ȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱcheckȱisȱaȱdraftȱdrawnȱbyȱaȱȱ ȱȱ
wellȬknownȱfinancialȱinstitutionȱonȱitselfȱorȱitsȱagent.ȱ
ȱȱ9.__________________ȱ
ȱ
LegalȱApplicationsȱ
10.ȱDustinȱdoesȱnotȱhaveȱaȱcheckingȱaccount,ȱbutȱheȱwouldȱlikeȱtoȱorderȱaȱpairȱofȱ
binocularsȱfromȱaȱmailȬorderȱcompany.ȱWhatȱmeansȱofȱpaymentȱwouldȱyouȱrecȬ
ommendȱtoȱhim?ȱExplainȱyourȱanswer.ȱ
ȱ
11.ȱFirstȱFederalȱBankȱofȱMorrisvilleȱwasȱremodeledȱatȱaȱcostȱofȱ$550,000.ȱTheȱbankȱ
hasȱonlyȱ$400,000ȱonȱhandȱtoȱpayȱtheȱremodelingȱcontractor.ȱPriorȱtoȱconstrucȬ
tion,ȱFirstȱFederalȱhadȱdepositedȱ$500,000ȱinȱLaurelȱBank.ȱHowȱwillȱFirstȱFederalȱ
likelyȱpayȱtheȱremainingȱ$150,000ȱtoȱtheȱcontractor?ȱExplainȱyourȱanswer.ȱ
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ29—2ȱPRACTICEȱACTIVITYȱ
Readȱtheȱfollowingȱcasesȱandȱanswerȱtheȱquestionsȱaboutȱthem.ȱAttachȱaȱpageȱifȱadditionalȱ
spaceȱisȱneededȱforȱanswers.ȱ
ȱ
1.ȱMerchantileȱBankȱissuedȱaȱcashier’sȱcheck.ȱTheȱcheckȱwasȱtransferredȱtoȱEQR.ȱ
EQRȱdepositedȱtheȱcheckȱwithȱBoatmen’sȱNationalȱBank.ȱMerchantileȱrefusedȱtoȱ
EQRȱsuedȱBoatmen’sȱforȱdoingȱso.ȱIsȱBoatmen’sȱliable?ȱExplain.ȱ[Environmentalȱ
1989)]ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
2.ȱJuneȱ1964,ȱThomasȱCookȱ&ȱSonsȱ(bankers)ȱsoldȱandȱdeliveredȱtoȱMr.ȱandȱMrs.ȱ
Kochtonȱ$25,000ȱinȱtravelersȱchecksȱinȱChicago,ȱIllinois.ȱMr.ȱKochtonȱsignedȱoneȱ
halfȱofȱtheȱchecks,ȱbutȱMrs.ȱKochtonȱwasȱnotȱhomeȱandȱfailedȱtoȱsignȱherȱhalfȱbeȬ
foreȱleavingȱonȱherȱtripȱtoȱTahitiȱwithȱtheȱchecks.ȱTheȱchecksȱwereȱstolenȱinȱTaȬ
1967,ȱAshfordȱtraveledȱtoȱHawaiiȱwhereȱheȱdepositedȱtheȱtravelersȱchecksȱwithȱ
theȱLibertyȱBank.ȱWhenȱLibertyȱtriedȱtoȱcollect,ȱtheȱtravelersȱchecksȱwereȱdisȬ
honored,ȱandȱAshford’sȱaccountȱwasȱdebited.ȱAshfordȱbroughtȱsuitȱagainstȱ
Cookȱ&ȱSons.ȱWillȱheȱwin?ȱExplain.ȱ[Ashfordȱv.ȱThos.ȱCookȱ&ȱSons,ȱ471ȱP.ȱ2dȱ530ȱ
Chapter 29 Commercial Paper
7-6
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ29—2ȱRETEACHȱ
Directions:ȱWriteȱtheȱanswersȱtoȱQuestionsȱ1–7ȱonȱtheȱblanksȱprovided.ȱTheȱanswerȱ
toȱQuestionȱ8ȱshouldȱappearȱinȱtheȱverticalȱboxes.ȱ
ȱ
ȱȱ 8.ȱ
1.ȱȱ __ȱ__ȱ__ȱȱ__ȱ__ȱ__ȱ__ȱ__ȱ
2.ȱȱ __ȱ__ȱ__ȱ__ȱ__ȱȱ__ȱ__ȱ__ȱ__ȱ__ȱ
4.ȱȱ ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ
6.ȱȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱȱ__ȱ__ȱ__ȱ
7.ȱȱ ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ
ȱ
ȱ
1.ȱCheckȱthatȱhasȱbeenȱacceptedȱbyȱaȱbankȱbeforeȱpaymentȱ
2.ȱTypeȱofȱletterȱofȱcreditȱthatȱisȱusedȱinȱtransactionsȱinvolvingȱtheȱsaleȱofȱgoodsȱ
3.ȱTypeȱofȱcheckȱthatȱisȱdrawnȱbyȱaȱwellȬknownȱfinancialȱinstitutionȱonȱitselfȱorȱitsȱ
agentȱ
5.ȱCheckȱthatȱaȱbankȱdrawȱonȱitselfȱ
6.ȱDraftȱthatȱisȱissuedȱbyȱaȱpostȱofficeȱorȱanȱexpressȱcompanyȱ
7.ȱLetterȱofȱcreditȱisȱusedȱtoȱguaranteeȱthatȱaȱpartyȱwillȱfulfillȱmonetaryȱobligationsȱ
involvingȱconstruction,ȱservice,ȱorȱsalesȱcontractsȱ
8.ȱCheckȱthatȱisȱdrawnȱbyȱaȱbankȱonȱfundsȱthatȱitȱhasȱonȱdepositȱatȱanotherȱbankȱ
Chapter 29 Commercial Paper 7-7
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ29—2ȱENRICHMENTȱ
Specializedȱformsȱofȱcommercialȱpaperȱwereȱdiscussedȱinȱthisȱlesson.ȱTheseȱincludeȱ
certifiedȱchecks,ȱcashier’sȱchecks,ȱteller’sȱchecks,ȱmoneyȱorders,ȱandȱtraveler’sȱ
checks.ȱAsȱinȱtheȱpreviousȱlesson’sȱEnrichmentȱActivity,ȱlearnȱmoreȱaboutȱhowȱtoȱ
obtainȱtheseȱtypesȱofȱcommercialȱpaperȱbyȱcheckingȱwithȱaȱlocalȱbank.ȱObtainȱtheȱ
answersȱtoȱtheȱfollowingȱquestions.ȱ
ȱ
1.ȱThinkȱofȱanȱexampleȱofȱwhyȱyouȱmightȱneedȱaȱcertifiedȱcheck.ȱHowȱwouldȱyouȱ
goȱaboutȱobtainingȱoneȱatȱyourȱbank?ȱIsȱthereȱaȱfeeȱforȱtheȱcheck?ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
2.ȱThinkȱofȱanȱoccasionȱwhenȱyouȱmightȱneedȱaȱcashier’sȱcheck.ȱHowȱwouldȱyouȱ
goȱaboutȱobtainingȱoneȱatȱyourȱbank?ȱAreȱanyȱfeesȱinvolved?ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
3.ȱForȱwhatȱpurposeȱmightȱyouȱwantȱtoȱobtainȱaȱmoneyȱorder?ȱWhereȱcanȱyouȱ
purchaseȱaȱmoneyȱorderȱinȱyourȱcommunity?ȱWhatȱisȱtheȱfeeȱtoȱpurchaseȱtheȱ
moneyȱorder?ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
4.ȱImagineȱthatȱyouȱareȱplanningȱanȱinternationalȱvacationȱandȱwantȱtoȱpurchaseȱ
traveler’sȱchecks.ȱHowȱwouldȱyouȱgoȱaboutȱobtainingȱtheseȱchecks?ȱAreȱthereȱ
anyȱfeesȱinvolved?ȱHowȱdoȱyouȱuseȱtheȱchecksȱonceȱyouȱarriveȱatȱyourȱdestinaȬ
tion?ȱ
Chapter 29 Commercial Paper
7-8
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱ
ȱ
TESTȱ
CHAPTERȱ29ȱ
SECTION I—IDENTIFY LEGAL TERMS
Directions:ȱPlaceȱaȱTȱforȱTrueȱorȱanȱFȱforȱFalseȱinȱtheȱAnswersȱcolumnȱtoȱshowȱ
hetherȱeachȱofȱtheȱfollowingȱstatementsȱisȱtrueȱorȱfalse.ȱw
Answers
1
.ȱTheȱnoteȱisȱtheȱmostȱcommonȱformȱofȱcommercialȱpaper.ȱ
2
.ȱBanksȱareȱdebtorsȱofȱtheȱdepositors.ȱ
3.ȱAnȱinstrumentȱthatȱreadsȱ“PayȱtoȱtheȱorderȱofȱAnitaȱKeysȱafterȱdeȬ
liveryȱofȱnecklace”ȱisȱnotȱenforceableȱasȱcommercialȱpaper.ȱ
4
.ȱAnȱIOUȱisȱenforceableȱasȱcommercialȱpaper.ȱ
5.ȱChecksȱcanȱonlyȱbeȱwrittenȱonȱspecialȱformsȱthatȱareȱmagneticallyȱ
encodedȱtoȱsimplifyȱcheckȱprocessingȱforȱtheȱbankingȱsystem.ȱ
6.ȱStopȱpaymentȱordersȱareȱgoodȱforȱsixȱmonthsȱwhetherȱtheyȱbeȱoralȱ
orȱwritten.ȱ
8.ȱInterestȱratesȱonȱCDsȱareȱusuallyȱsignificantlyȱhigherȱthanȱtheȱratesȱ
onȱsavingsȱorȱcheckingȱaccounts.ȱ
9.ȱAȱcashier’sȱcheckȱisȱaȱpersonalȱcheckȱthatȱhasȱbeenȱacceptedȱbyȱaȱ
bankȱbeforeȱpayment.ȱ
10.ȱPersonsȱwhoȱdoȱnotȱhaveȱcheckingȱaccountsȱuseȱlettersȱofȱcredit.ȱ
ȱ1.ȱȱ ȱ
ȱ2.ȱȱ ȱ
ȱ3.ȱȱ ȱ
ȱ
ȱ4.ȱȱ ȱ
ȱ5.ȱȱ ȱ
ȱ
ȱ6.ȱȱ ȱ
ȱ
ȱ
ȱ8.ȱȱ ȱ
ȱ
ȱ9.ȱȱ ȱ
ȱȱ
ȱ10.ȱȱ ȱ
Chapter 29 Commercial Paper 7-9
