BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A written document that transfers the value in it from one person to other
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A written document entitled on an individual by delivery or endorsement
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A written document, entitled on a person to receive money
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All of the above
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Detailed explanation-1: -The term Negotiable Instrument has been defined under section 13(1) of Negotiable Instrument Act, 1881. According to the Act, a negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer.
Detailed explanation-2: -A negotiable instrument is a signed document that promises a sum of payment to a specified person or the assignee. In other words, it is a formalized type of IOU: A transferable, signed document that promises to pay the bearer a sum of money at a future date or on-demand.
Detailed explanation-3: -45:-A “negotiable instrument” means: cheque payable either to order or to bearer. bill of exchange.
Detailed explanation-4: -Important characteristics of Negotiable Instruments are: Negotiable instrument does not simply give ownership of the instrument but right to property as well. The property in negotiable instrument can be moved without any formality.