BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The payee’s bank
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The bank which collects the cheque
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The bank on which the cheque is drawn
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The endorsee’s bank
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Detailed explanation-1: -There are three parties involved in the processing of a cheque: the drawer, who issues the cheque and holds the bank account; the drawee, which is the financial institution; and the payee, who is the person whose name appears on the cheque and will receive the funds.
Detailed explanation-2: -The maker of a bill of exchange or cheque is called the “drawer"; the person thereby directed to pay is called the “drawee".
Detailed explanation-3: -Payable on demand /bearer: A cheque is always payable on demand and it may be payable to bearer also. A Bill of Exchange may or may not be payable on demand and cannot be made payable to bearer.
Detailed explanation-4: -The person or entity writing the check is known as the payor or drawer, while the person to whom the check is written is the payee. The drawee, on the other hand, is the bank on which the check is drawn.
Detailed explanation-5: -Drawee-this is the banker of the drawer. Payee-is the person who gets the check payment. The account holder has a check book from their bank and therefore writes (draws) a check to the bank (bank of drawee) to facilitate the payment.