CHAPTER 5

Which of the following is TRUE regarding the features of Bills of exchange?

• The bill must be signed by the drawee only.

• The order should have any condition

• No need Fixed date for the amount to be paid

• The bill of exchange amount should be definite

Inland bills is the bill that can be paid outside country.

• TRUE

• FALSE

Cheque must have the condition written up.

• TRUE

• FALSE

How long the cheque is valid after it issue ?

• 3 months

• 6 months

• 9 months

• 12 months

A remittance refers to money that is sent or transferred to another party.

• TRUE

• FALSE

All Banker's Cheques are pre-printed with the crossing " NEGOTIABLE".

• TRUE

• FALSE

A demand draft is a negotiable instrument to transfer funds from one bank to another.

• TRUE

• FALSE

The bank issues a demand draft, a cheque is issued by the customer of the bank.

• TRUE

• FALSE

A cheque payment can be stopped by the bank, however, payment done through a DD cannot be stopped.

• TRUE

• FALSE

Which of the following is not types of Remittance?

• Telegraphic transfer

• Bill of exchanges

• Demand draft

• Mail transfer