Multiple choice

The drawee of the bank draft has received information about the loss of the draft from the purchaser. The drawee banker should

  1. stop payment

  2. exercise caution

  3. refuse to recognize the notice/information

  4. issue a duplicate draft
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When a banker receives information about a lost draft from the purchaser, they should exercise extreme caution but cannot automatically stop payment without proper procedure and verification. The banker must verify the claim, follow established protocols for lost instruments, and protect both parties' interests while preventing fraud.

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