What are written instruments that can be transferred from person to person as a substitute for money called?

Negotiable instruments are written documents that guarantee the payment of a specific amount of money either on demand or at a set time. They can be transferred from one person to another, allowing the holder of the instrument to receive the specified amount. Common examples of negotiable instruments include checks, promissory notes, and bills of exchange.

These instruments serve as substitutes for money because they represent a promise to pay that can be easily transferred, facilitating various financial transactions without the immediate exchange of cash. The key characteristic of negotiable instruments is their ability to be transferred to others, which allows for flexibility and liquidity in financial dealings.

In contrast, legal documents encompass a broad range of papers that may not necessarily have financial implications or the ability to be transferred as money. Financial securities can refer to stocks and bonds, which are more complex financial tools. Contractual agreements outline obligations between parties but do not inherently possess the same transferability as negotiable instruments. Thus, the definition and nature of negotiable instruments make them the correct answer to this question.