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TOTAL QUESTION: 10
TOTAL TIME= 05 MIN
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Your results are here!! for" Demand Draft vs Cheque "
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Question 1 of 10
1. Question
Why is a Demand Draft considered a prepaid instrument?
Correct
The amount for a Demand Draft is paid upfront to the bank before the DD is issued.
Incorrect
The amount for a Demand Draft is paid upfront to the bank before the DD is issued.
Unattempted
The amount for a Demand Draft is paid upfront to the bank before the DD is issued.
Hint
0
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Question 2 of 10
2. Question
Who can issue a Demand Draft according to the given content?
Correct
A Demand Draft can be issued only by a bank or financial institution, not by an individual.
Incorrect
A Demand Draft can be issued only by a bank or financial institution, not by an individual.
Unattempted
A Demand Draft can be issued only by a bank or financial institution, not by an individual.
Hint
0
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Question 3 of 10
3. Question
On what does payment of a cheque primarily depend?
Correct
Unlike a DD, a cheque depends on the availability of sufficient funds in the drawer‘s account.
Incorrect
Unlike a DD, a cheque depends on the availability of sufficient funds in the drawer‘s account.
Unattempted
Unlike a DD, a cheque depends on the availability of sufficient funds in the drawer‘s account.
Hint
0
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Question 4 of 10
4. Question
What is the main reason a Demand Draft generally has no risk of dishonor due to insufficient funds?
Correct
The bank collects the amount before issuing the DD, so the payment is already secured.
Incorrect
The bank collects the amount before issuing the DD, so the payment is already secured.
Unattempted
The bank collects the amount before issuing the DD, so the payment is already secured.
Hint
0
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Question 5 of 10
5. Question
How can a cheque generally be transferred to another party?
Correct
A cheque can generally be transferred through endorsement.
Incorrect
A cheque can generally be transferred through endorsement.
Unattempted
A cheque can generally be transferred through endorsement.
Hint
0
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Question 6 of 10
6. Question
What is the general transferability status of a Demand Draft according to the given content?
Correct
A Demand Draft is generally non-transferable and is payable to the named payee only.
Incorrect
A Demand Draft is generally non-transferable and is payable to the named payee only.
Unattempted
A Demand Draft is generally non-transferable and is payable to the named payee only.
Hint
0
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Question 7 of 10
7. Question
What may happen if there are insufficient funds in the drawer‘s account when a cheque is presented?
Correct
A cheque may be dishonored if the drawer‘s account does not have sufficient funds.
Incorrect
A cheque may be dishonored if the drawer‘s account does not have sufficient funds.
Unattempted
A cheque may be dishonored if the drawer‘s account does not have sufficient funds.
Hint
0
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Question 8 of 10
8. Question
Under which provision mentioned in the content may a drawer face legal consequences for cheque dishonor?
Correct
The content states that legal consequences may arise under Section 138 of the Negotiable Instruments Act, 1881.
Incorrect
The content states that legal consequences may arise under Section 138 of the Negotiable Instruments Act, 1881.
Unattempted
The content states that legal consequences may arise under Section 138 of the Negotiable Instruments Act, 1881.
Hint
0
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Question 9 of 10
9. Question
Which statement correctly compares the usual clearing time of a DD and a cheque?
Correct
DDs are typically cleared on the same day or next working day, while cheques may take several days depending on the type and bank.
Incorrect
DDs are typically cleared on the same day or next working day, while cheques may take several days depending on the type and bank.
Unattempted
DDs are typically cleared on the same day or next working day, while cheques may take several days depending on the type and bank.
Hint
0
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Question 10 of 10
10. Question
Which statement correctly compares the charges associated with DDs and cheques?
Correct
DDs typically involve higher issuance and processing fees, while cheques are usually cheaper to issue.
Incorrect
DDs typically involve higher issuance and processing fees, while cheques are usually cheaper to issue.
Unattempted
DDs typically involve higher issuance and processing fees, while cheques are usually cheaper to issue.
Hint
0