Any people good at finance? Lawyers? Help is much appreciated. Thank You?

I don't know what it is wtih this particular problem but i'm having a very difficult time with it. I've read it a couples times and I'm still unsure. I don't normally like asking for help but in this particular case i could really use it. Can anyone contribute Help is much appreciated. Thanks


Eve possesses an instrument that is "payable to bearer." She loses it. Fred finds it. On this instrument, Fred may
a) collect payment
b) not collect payment because he did not give value for it.
c) not collect payment, because he found it.
d) not collect payment because he is not the "bearer."


Can someone contribute. help fast. Person will get 5 points.

A) Collect Payment

As it states that it is Payable to Bearer, anyone who bears it (holds it) can cash it.

It's very dangerous to endorse checks to Bearer. It is safer to actually name the person that is to receive it.

sorry unless your name is on it anyone that finds it can cash it??or if it is payable to you and you sign the back they can cash it too??however if it says payable to bearer and has your name on it nobody but you can cash it!!