Problem

Match each of the following terms A through F with the appropriate definitions 1 through...

Match each of the following terms A through F with the appropriate definitions 1 through 6.

_______ 1. A written promise to pay a specified amount either on demand or at a definite future date.

_______ 2. The cost of borrowing money for a borrower; alternatively the profit from lending money for a lender.

_______ 3. One who signs a note and promises to pay it at maturity.

_______ 4. The one to whom the promissory note is made payable.

_______ 5. Refers to a note maker’s inability or refusal to pay the note at maturity.

_______ 6. The amount that the signer of a note agrees to pay back when the note matures, not including interest.

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Solutions For Problems in Chapter 16