A Bill of Exchange in which a bank orders its branch or another bank, as the case may be, to pay a specified amount to a specified person or to the order of the specified person is called

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	cheque
B	bankdraft
C	promissory note
D	insurance

Explanation:

Detailed explanation-1: -A bill of exchange is issued by the creditor and orders a debtor to pay a particular amount within a given period of time. The promissory note, on the other hand, is issued by the debtor and is a promise to pay a particular amount of money in a given period.

Detailed explanation-2: -A “cheque” is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand and it includes the electronic image of a truncated cheque and a cheque in the electronic form.

Detailed explanation-3: -a) Inland Bills A bill of exchange may be an inland instrument under two conditions. Firstly, the bill must be drawn as well as payable within India. Secondly, it may also be drawn in India upon an India resident but payable in a foreign country.

Detailed explanation-4: -An Act to define and amend the law relating to Promissory Notes, Bills of Exchange and Cheques. CHAPTER I PRELIMINARY 1. Short title.-This Act may be called the Negotiable Instruments Act, 1881.

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