Book Opener

Consider the key terms in the list below. Then use these terms tocomplete the following exercises.negotiable instrumentnotemakerpayeecheckcertificate of deposit (CD)drawerdraweeacceptorsight drafttime draftwords of negotiability1. With a partner, create a script in which you discuss negotiabilitywith a banker. Use all of the terms listed above in your role-play.2. Act out the scenario.3. Perform your skit in front of the class.4. Have your classmates critique your performance.5. Read your classmates’ comments and reflect on how you couldimprove your performance.Self-Check Quiz Visitthe UnderstandingBusiness and PersonalLaw Web site atubpl.glencoe.com andclick on Chapter 23:Negotiable Instruments—Self-Check Quizzesto prepare for thechapter exam.Answer the following questions. Refer to the text for additional reinforcement.6. What is a certificate of deposit?7. What is an acceptor?8. Explain the elements of negotiable instruments.9. Explain the definite-time contract.10. What are the words of negotiability?11. Why do some people feel that it is safer to use negotiable instruments than cash?12. Why do CDs pay higher interest than regular savings accounts?13. What does it mean to postdate a check?14. Why do businesses and private parties opt to use drafts?15. How would a drawee indicate that he or she agrees to the draft?16. Why is it a bad idea to write a written instrument in pencil?17. Where should a signature appear on an instrument?Chapter 23: Negotiable Instruments 517