CREDIT INSTRUMENTS

A _____________________ is a document evidencing the existence of a credit obligation that defines the responsibility of the debtor towards his creditor and the right of the creditor to collect from the debtor on the date assigned.

Credit instruments have developed a __________________ need.

A firm engaged in commerce is interested in three kinds of credit instruments: 1. the open book account, 2. the promissory note, and 3. the __________________.

____________________ involves other credit instruments such as bills of exchange and letters of credit.

______________________ fall under two broad classifications: the credit instruments with general acceptability, and the credit instruments with limited acceptability.

Credit instruments with ____________________ or instruments that are widely accepted without questioning the integrity of the person offering it.

The only credit instrument that meets the qualification of general acceptability is credit _____________________.

_______________________ may be in the form of banknotes, treasury certificates which is either representative paper money fully backed by gold reserves, or fiduciary paper money, which is partially backed by gold reserves.

Credit instruments with limited acceptability are those credit instruments that are accepted only by huge people and may be subdivided into two types: credit instruments for investment purposes and credit instruments for ______________________.

Credit instruments for investment purposes or subdivided into: stock certificates, __________________, and money market bills.