Question : A ___________ is an instruction given by the account holder to the bank to pay a specific amount to a particular person.
Option 1: Cheque
Option 2: Demand draft
Option 3: Bill of exchange
Option 4: Promissory note
Correct Answer: Cheque
Solution : The correct answer is (a) Cheque.
A cheque is an instruction given by the account holder to the bank to pay a specific amount of money to a particular person or entity. It is a commonly used payment instrument in which the account holder writes the payee's name, the amount to be paid, and the date on the cheque. By depositing or presenting the cheque to their bank, the payee can receive the specified amount of money from the account holder's bank account. Cheques provide a convenient and widely accepted method of making payments, particularly for larger amounts or when electronic transfers are not feasible or preferred.
Question : ______________ is a payment instrument issued by a bank similar to a cheque
Question : The currency note in India is a:
Option 1: Promissory note
Option 2: Cheque
Option 3: Demand draft
Option 4: Bill of exchange
Question : ___________ is a document issued by a bank that guarantees the payment of a specific amount of money to a specified person or entity.
Option 1: Bank guarantee
Option 2: Letter of credit
Option 3: Promissory note
Option 4: Demand draft
Question : Which of the following is not a type of negotiable instrument?
Option 2: Bill of exchange
Option 4: None of the above
Question : It is an negotiable promissory note with the fixed maturity period. Which money market instrument is highlighted in the given statement?
Option 1: Treasury bill
Option 2: Commercial paper
Option 3: Call money
Option 4: Commercial bill
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