GENERAL KNOWLEDGE

GK

BANKING AWARENESS AND SEBI

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
An account holder draws a cheque on a ____
A
Banker of the Payee
B
Banker of the Drawee
C
Banker of the Drawer
D
Banker of the Endorsee
Explanation: 

Detailed explanation-1: -A cheque is a bill of exchange in which one party (Drawee) is a Bank. So a Drawer (account Holder) draws the Cheque on the (Drawee bank) in the name of a Payee. The Drawer has to write the amount in both in figures and words.

Detailed explanation-2: -(1) A “negotiable instrument” means a promissory note, bill of exchange or cheque payable either to order or to bearer.

Detailed explanation-3: -While the drawer is the person who draws the cheque, the drawee is the banker on whom it is drawn. Apart from these, there can also be a payee who is liable to pay the amount on the cheque. Furthermore, there can also be a holder who is generally the original payee.

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