GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Trust Receipts
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Negotiable Instruments
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Documents of Title of Goods
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All of these
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Detailed explanation-1: -(1) A “negotiable instrument” means a promissory note, bill of exchange or cheque payable either to order or to bearer.
Detailed explanation-2: -Cheques are perhaps the most common negotiable instrument example. This is an instrument in writing with a specific payment amount. Upon receipt, the payer’s financial institution pays out these funds to the bearer, either in cash or to a chosen bank account.
Detailed explanation-3: -Promissory notes are a common type of financial instrument in loan transactions. As the payer of such a note, it’s important to know that, unless a note expressly stipulates that it is not negotiable, promissory notes are negotiable instruments that can be transferred or assigned by the original payee to a third party.