Funeral Arts National Board Practice Exam

Who is referred to as the maker of a promissory note?

1. Creditor

2. Debtor

3. Drawer

4. Executor

The correct answer is: Debtor

In the context of a promissory note, the individual who makes the promise to pay a specified sum of money is referred to as the debtor. The debtor is the party who is borrowing the money and is responsible for fulfilling the terms outlined in the promissory note, which includes repayment details such as the amount, interest, and due date. The term "maker" specifically applies to the person who creates the promissory note and promises to pay the stated amount to the payee (the person receiving the payment). Therefore, identifying the debtor as the maker clarifies their role in the agreement as the one obligated to repay the loan, which is the essential function of a promissory note in financial transactions. Other terms in the context of financial agreements have distinct meanings. The creditor is the person or institution that lends the money. The drawer is typically associated with checks or drafts, being the one who creates the instrument directing payment. An executor relates to a person appointed to administer a deceased person's estate, and does not pertain to the creation of a promissory note.