A draft made in the United States calls for payment in Canadian dollars.
a. The draft is nonnegotiable because it calls for payment in money of another country.
b. The draft is nonnegotiable because the rate of exchange may fluctuate thus violating the sum certain rule.
c. The instrument is negotiable if it satisfies all of the other elements of negotiability.
d. The instrument is negotiable only if it has the exchange rate written on the draft.
Answer: C
CPA Exam
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