HSC Finance, Banking, and Bima 2nd Paper 5th Chapter Note Negotiable Instrument

HSC Finance, Banking, and Bima 2nd Paper 5th Chapter Note Negotiable Instrument. A negotiable instrument is a docomeent guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer usually named on the docomeent. More specifically, it is a docomeent contemplated by or consisting of a contract, which promises the payment of money without condition, which may be paid either on demand or at a future date. The term can have different meanings, depending on what law is being applied and what country and context it is used in.

HSC Finance, Banking, and Bima 2nd Paper 5th Chapter Note Negotiable Instrument

Common prototypes of bills of exchanges and promissory notes originated in China, where special instruments called feisty were used to safely transfer money over long distances during the reign of the Tang Dynasty in the 8th century. In the mid-13th century, the Ilkhanid rulers of Persia printed the “cha” or “chap” which was used as paper money for limited use for transactions between the court and the merchants for about three years before it collapsed. The collapse was caused by the court accepting the “cha” only at the progressive discount.

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