BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Term Bill
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Faster Bill
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Sight Bill
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Ready Bill
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Detailed explanation-1: -A bill of exchange issued by a bank is referred to as a bank draft. The issuing bank guarantees payment on the transaction. A bill of exchange issued by individuals is referred to as a trade draft. If the funds are to be paid immediately or on-demand, the bill of exchange is known as a sight draft.
Detailed explanation-2: -Bills of Exchange can be defined as a financial instrument that is short-term and negotiable and consists of an order in writing. This written order is essentially used in international trade where one party is bound to pay a fixed amount of money (either on-demand or at a predetermined rate) to another party.
Detailed explanation-3: -A bill of exchange is of real use if it is accepted by the person directed to pay the amount. For example, X orders Y to pay ₹ 50, 000 for 90 days after date and Y accepts this order by signing his name, then it will be a bill of exchange.