BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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can bounce when there are not enough funds to cash them.
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are just instruments to transfer money between banks.
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are not always accepted when trying to purchase goods or services.
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are not issued by the government.
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are not guaranteed by banks.
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Detailed explanation-1: -By defini-tion, currency and demand deposits are money, while checks, credit and debit cards are not. This is because currency and checking deposits are their owner’s assets, whereas a check or a credit/debit card is not a part of its owner’s assets. transactions, though it is not a medium of exchange.
Detailed explanation-2: -A cheque is a document you can issue to your bank, directing it to pay the specified sum mentioned in digits as well as words to the person whose name is borne on the cheque. Cheques are also called negotiable instruments.
Detailed explanation-3: -Money (banknotes, coins, scriptural money and electronic money) is transferred via payment transactions either in the form of cash or in the form of non-cash transfers of money. Cash payments are primarily associated with smaller amounts in everyday purchases by individuals.
Detailed explanation-4: -Using a cheque to transfer your money from one bank to another is as traditional as it gets. On the cheque, simply sign in the name of the receiver who is supposed to get the money, specify the amount you want to send and simply hand the cheque over to receiver! Done, it is that easy.