BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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promissory note
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bill of lading
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bill of exchange
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endorsement
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Detailed explanation-1: -Transfer of a negotiable instrument to another person by signing on it, is known as Endorsement.
Detailed explanation-2: -THE NEGOTIABLE INSTRUMENTS ACT, 1881. 5. “Bill of exchange”.-A “bill of exchange” is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.
Detailed explanation-3: -Blank Endorsement or General Endorsement An endorsement is blank or general where the endorser signs his name only, and it becomes payable to bearer.
Detailed explanation-4: -The holder of a negotiable instrument may sign his or her name on the back of that instrument, which replicates the transfer of title or ownership of that negotiable instrument, this process is termed as an endorsement.
Detailed explanation-5: -Four principal kinds of endorsements exist: special, blank, restrictive, and qualified. An endorsement that clearly indicates the individual to whom the instrument is payable is a special endorsement.