BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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banker of the payee
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banker of the drawee
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banker of the drawer
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banker of the endorsee
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Detailed explanation-1: -A cheque is a bill of exchange in which one party (Drawee) is a Bank. So a Drawer (account Holder) draws the Cheque on the (Drawee bank) in the name of a Payee. The Drawer has to write the amount in both in figures and words.
Detailed explanation-2: –The maker of a bill of exchange or cheque is called the “drawer”; the person thereby directed to pay is called the “drawee”.
Detailed explanation-3: -The drawer is the issuer of the cheque, the drawee is the financial institution, and the payee is the recipient of the cheque.
Detailed explanation-4: -Drawee-this is the banker of the drawer. Payee-is the person who gets the check payment. The account holder has a check book from their bank and therefore writes (draws) a check to the bank (bank of drawee) to facilitate the payment.
Detailed explanation-5: -A promissory note is valid only for a period of 3 years from the date of its execution after which it becomes invalid. A cheque does not require acceptance and its object is for immediate payment. A bill of exchange must be accepted first before payment can be demanded on it. No acceptance is required from the drawee.