BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Fixed deposit receipt
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Bank draft
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Promissory note
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Cheque
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Detailed explanation-1: -A stranger cannot endorse it. It may be made either by the endorser merely signing his name on the instrument or by any words showing an intention to endorse or transfer the instrument to a specified person. It must be signed by the endorser.
Detailed explanation-2: -Negotiable instruments like cheques/ DDs are instruments through which value is passed on by delivery in good faith. Basic attribute is that these can be further endorsed to 3rd parties. However a fixed deposit receipt is considered an acknowledgement of debt and not a negotiable instrument.
Detailed explanation-3: -The FD receipt is the document that acts as the proof of investment for a fixed deposit. The half-page document is given to you from the bank after you open a fixed deposit account. This recipe has crucial details, such as name, age, address, details, and more for the scheme.
Detailed explanation-4: -The FD Receipt is not transferable and a valid pledge cannot be made with it without the bank’s permission.