To be negotiable, an instrument must contain which of the following?

For an instrument to be considered negotiable, it must contain an unconditional promise to pay. This characteristic is fundamental to negotiability because it ensures that the holder of the instrument has a clear right to receive the stated amount without any conditions or contingencies attached. An unconditional promise offers certainty and clarity, which are essential for the smooth transfer of the instrument between parties.

The significance of this requirement lies in its facilitation of the transferability of the instrument. If the promise to pay included conditions, it would create ambiguity and could complicate the process by which the instrument is passed along to others. Being negotiable allows these instruments to be used in commerce and finance efficiently, providing flexibility in trade and payment methods.

The other options mentioned do not pertain to the fundamental characteristics that define negotiable instruments. For instance, a secured backing from the government is not a requirement for negotiability; many instruments lack such backing yet remain negotiable. In addition, a specified trade amount is important for clarity but is not itself a defining trait of negotiability. Similarly, an approval from two witnesses does not feature in the criteria for negotiability, as it is not universally required for financial instruments. Thus, the unconditional promise to pay stands as the primary criterion for negoti