Which of the following is a type of negotiable instrument?

A negotiable instrument is a financial document that guarantees the payment of a specific amount of money to a designated party on demand or at a specified time. One key characteristic of a negotiable instrument is that it can be transferred from one person to another, allowing the holder to receive payment without needing the original creator or signer to be involved.

A promissory note fits this definition perfectly. It is a written promise in which one party agrees to pay a certain sum of money to another party under specified terms. Promissory notes are easily transferable, making them a common form of negotiable instruments in financial transactions. They enable the holder to either collect the debt or transfer the right to receive payment to another party.

In contrast, the other options listed, such as leases, mortgage contracts, and service contracts, do not feature the essential qualities of negotiable instruments. Lease agreements involve rental terms and obligations between a landlord and tenant but do not facilitate the transfer of payment rights in the same way. Mortgage contracts are binding agreements for property loans secured by the property itself and typically involve more complex legal stipulations that do not simplify transferability. Service contracts are agreements for the provision of services and are not designed to be transferred or endorsed like a financial instrument.