Multiple choice

Which of the following is not a negotiable instrument?

  1. Cheque

  2. Fixed deposit receipt

  3. Promissory note

  4. Bill of exchange

  5. Demand draft
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Negotiable instruments are written orders or unconditional promises to pay a fixed sum of money on demand or at a certain time. Hence, a fixed deposit (FD) is a financial instrument provided by banks which provides investors with a higher rate of interest than a regular savings account, until the given maturity date. 

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