BANKING GENERAL KNOWLEDGE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
A document written and Signed by the payer/maker
|
|
|
Containing an unconditional undertaking
|
|
|
To pay a certain sum of money only to a specific person or the bearer
|
|
|
All of the above
|
Detailed explanation-1: -“Promissory note.”-A “Promissory note” is an instrument in writing (not being a bank-note or a currency-note) containing an unconditional undertaking, signed by the maker, to pay a certain sum of money only to, or to the order of, a certain person, or to the bearer of the instrument.
Detailed explanation-2: -A promissory note is a financial instrument that contains a written promise by one person to another person to pay a definite sum of money either on-demand or in the future date. It is an unconditional promise to pay a definite amount to a payee.
Detailed explanation-3: -According to Negotiable Instrument Act, 1881, a promise to pay the bearer is not the type of promissory note s promissory note can be defined as a written document which states the promise to pay the sum of money to a specified person.
Detailed explanation-4: -26. Capacity to make, etc., promissory notes, etc.-Every person capable of contracting, according to the law to which he is subject, may bind himself and be bound by the making, drawing, acceptance, indorsement, delivery and negotiation of a promissory note, bill of exchange or cheque.
Detailed explanation-5: -A promissory note is a legal, financial instrument in which one party promises another to pay a debt on a specific date. It’s a formal agreement signed by the drawer promising to pay the money on a certain date or whenever it’s requested.