Match the following terms to the appropriate definitions. promissory note

Solution :

A. Maker of a note: 3. It is the person who signs the note and promises to pay.

The maker puts his signature and promises to pay the bearer the amount of the value of the note.

B. Interest: 2. It is the cost of borrowing money and profit for lender.

It is the extra money that the borrower pays to the lender. It is like an income to the lender.

C. Promissory note: 1. It is a promise to pay the signed sum.

It is a note that promises to pay the amount of the value.

D. Payee of a note: 5. It is the person to which the note is payable.

Payee is the individual who is the owner of the note.

E. Principal of a note: E. It is the amount signed to be paid back excluding interest.

It is the basic amount signed to be paid to the bearer.

F. Dishonoring a note: 5. It is inability to pay the signed sum.

Dishonoring is refusal to pay or the inability to pay the value for the signed amount.