An instrument evidencing one person owing another money is a?

An instrument evidencing one person owing another money is a?

• A. Note
• B. Mortgage
• C. Deed
• D. Lien

Answer: (A)

The main concept here is the document that records a debt between two people—the note. A promissory note is a written promise to repay a specific amount under agreed terms, so it evidences the debt itself and the obligation to pay. In real estate finance, this debt is usually paired with a security instrument like a mortgage or deed of trust, which creates a lien on the property to ensure repayment. A deed, on the other hand, transfers ownership of the property, not the debt. A lien is a claim against the property to secure payment, not the actual debt instrument. So the document that evidences the debt owed is the note.

The main concept here is the document that records a debt between two people—the note. A promissory note is a written promise to repay a specific amount under agreed terms, so it evidences the debt itself and the obligation to pay. In real estate finance, this debt is usually paired with a security instrument like a mortgage or deed of trust, which creates a lien on the property to ensure repayment. A deed, on the other hand, transfers ownership of the property, not the debt. A lien is a claim against the property to secure payment, not the actual debt instrument. So the document that evidences the debt owed is the note.