BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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In case of a demand draft is issued, the liability of the bank will be____
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Demand liability
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Time liability
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Current liability
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Long term liability
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Explanation:
Detailed explanation-1: -Issue Demand Draft transaction allows the customer to request the bank for issuance of a demand draft. The payee of the draft needs to be first registered through Manage Payees. The user then initiates a request to issue a demand draft by asking the bank to debit the account provided by user.
Detailed explanation-2: -Demand drafts are only payable on demand and they can be only deposited in the bank, unlike cheques demand drafts cannot be paid to the bearer.
Detailed explanation-3: -Unlike a personal cheque, demand draft is guaranteed by the bank. It means that the payee gets the guarantee for funds.
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