BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Negotiable Instrument Act provides definition of <br />(a) Promissory note <br />(b) Bill of exchange <br />(c) cheque <br />(d) Demand draft. <br />Which of the following is correct?<br />
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a, b, c only
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b, c, d only
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a, c, d only
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a, b, c, d all
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Explanation:
Detailed explanation-1: -Section 13 of the Negotiable Instruments Act states that a negotiable instrument is a promissory note, bill of exchange or a cheque payable either to order or to bearer. Negotiable instruments recognised by statute are: (i) Promissory notes (ii) Bills of exchange (iii) Cheques.
Detailed explanation-2: -Section 4 in The Negotiable Instruments Act, 1881.
Detailed explanation-3: -A “bill of exchange” is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay on demand or at fixed or determinable future time a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.
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