Question

Instructions Question 1 Two purposes of commercial paper are to serve as a substitute for money and as a credit vehicle • True False Question 2 10 A signature may consist of a parties initials. True False 10 pts D Question 3 The notation "without recourse" may be used by someone who indorses an instrument to avoid liability for payment on the instrument. True False

Answer 1

Q1) Answer is True.

The three functions of Negotiable instruments are as follows;

1. Acts as a Credit device,

2. A Substitute for money and

3. Acts as a record keeping device.

Q2) Answer is True.

Like full signatures you can also have signature initials only and this means using your initials as a signatue to validate socuments.

Q3) Answer is True.

The notation without recourse is commonly used by many persons to create a qualified indorsement. When any person uses the notation without recourse that relieves indorser of any liability for the payment of the instrument.It is generally used by persons acting in a reresentative capacity.