BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Pay A or Order
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Pay to Order to A
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Pay A and B
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Pay A only
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Detailed explanation-1: -An instrument can be negotiated even if it is conditional on some future event, or if the amount to be paid will be determined at some future date-this is a false statement about the negotiable instrument.
Detailed explanation-2: -A crossed cheque can only be paid in account & hence it is not a negotiable instrument.
Detailed explanation-3: -Negotiable instruments are unconditional orders or promise to pay, and include checks, drafts, bearer bonds, some certificates of deposit, promissory notes etc. are written contracts whose benefit could be passed on from its original holder to a new holder.
Detailed explanation-4: -According to the Negotiable Instruments Act, 1881 there are just three types of negotiable instruments i.e., promissory note, bill of exchange and cheque.