BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The bank that collects the cheque
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The payee’s bank
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The endorser’s bank
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The bank upon which the cheque is drawn
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Detailed explanation-1: -There are three parties involved in the transaction – the drawer is the person who writes the cheque, the drawee is the bank that has to transfer the funds and the payee is the person in whose name the cheque has been issued.
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: -A check is a written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer. 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-4: -(3) “Consumer transaction” means a transaction in which an individual incurs an obligation primarily for personal, family, or household purposes. (4) “Drawee” means a person ordered in a draft to make payment. (5) “Drawer” means a person who signs or is identified in a draft as a person ordering payment.
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.