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.
