Multiple choice

A promissory note does not require

  1. noting

  2. discounting

  3. acceptance

  4. none of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A promissory note is a written unconditional promise by one party (the maker) to pay another party (the payee) a specific sum on demand or at a specified time. Unlike bills of exchange which require acceptance by the drawee, promissory notes do not need acceptance because the maker is already primarily liable. Noting is required for dishonored bills, and discounting is optional - but acceptance is never needed for promissory notes.

Keep practicing — related questions