Multiple choice

Which of the following is a negotiable instrument?

  1. Fixed deposit receipt

  2. Savings bank account pass book

  3. Cheque

  4. Gift coupons
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A cheque is a negotiable instrument as it meets all requirements: it's in writing, signed by the drawer, contains an unconditional order to pay a specified sum, is payable on demand, and is payable to order or bearer. Fixed deposit receipts, passbooks, and gift coupons do not have negotiability characteristics.

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