The correct answer is D. Mutual Fund.
A negotiable instrument is a document that can be easily transferred from one person to another. It is a written promise to pay a certain amount of money on a specific date. The most common types of negotiable instruments are checks, drafts, and promissory notes.
A check is a written order to a bank to pay a certain amount of money to the person named on the check. A draft is a written order from one person to another to pay a certain amount of money to a third person. A promissory note is a written promise to pay a certain amount of money to another person on a specific date.
Mutual funds are not negotiable instruments because they are not promises to pay a certain amount of money. Mutual funds are investments that pool money from many investors and invest it in a variety of assets, such as stocks, bonds, and other securities. The value of a mutual fund share can go up or down, and investors can buy and sell shares at any time.
Here is a brief explanation of each option:
- A check is a written order to a bank to pay a certain amount of money to the person named on the check. Checks are negotiable instruments because they can be easily transferred from one person to another.
- A draft is a written order from one person to another to pay a certain amount of money to a third person. Drafts are negotiable instruments because they can be easily transferred from one person to another.
- A promissory note is a written promise to pay a certain amount of money to another person on a specific date. Promissory notes are negotiable instruments because they can be easily transferred from one person to another.
- A mutual fund is an investment that pools money from many investors and invests it in a variety of assets, such as stocks, bonds, and other securities. Mutual funds are not negotiable instruments because they are not promises to pay a certain amount of money.