Question

If the maker of a promissory note fails to pay the note on the due date, the note is said to be A. displacedB. disallowedC. dishonoredD. discounted

Answer 1

Answer:

The answer is C: dishonored

Explanation:

When the maker of a promissory notes fails to pay on the due date, the promissory note is called dishonored. With a promissory note, a buyer makes a short-term commitment to pay a supplier for merchandise within a stated period of time and at a certain interest rate. The maker of the note is the party promising to make payment, the payee is the party to whom payment will be made, the principal is the stated amount of the note, and the maturity date is the day the note will be due.

It is called dishonored because the maker made a promess to pay a determined amount in a period of time. By failing at honoring it's word, the note its called dishonored.