Tag: banking and bank transactions

Quizzes (4) Questions (51)

Questions Related to banking and bank transactions

Multiple choice business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

A cheque in which bank makes cash payment to any one who presents cheque on the counter of the bank __________.

  1. Cross cheque

  2. Demand cheque

  3. Order cheque

  4. Bearer cheque
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A cheque in which bank makes cash payments to anyone who presents cheque on the counter of the bank is a Bearer cheque. It is payable to bearer i.e, anyone who presents it in the bank for encashment. Bearer cheques can be transferred by mere delivery.

Multiple choice business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

 _____________ is used by the account holder for depositing cash/cheques into the bank.

  1. Receipt

  2. Voucher

  3. Pay-in-slip

  4. Withdrawl slip
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Pay in slip as the name suggests is a slip that is filled by the customer to deposit money in the bank account either by cash or by cheque. The things that need to be filled in a pay in slip are the account details in which the money is to be deposited, amount to be deposited by cash or by cheque, and the signature of the depositor.

Multiple choice business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

Account holders are required to carry a passbook whenever he goes to the bank to do banking transaction.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

True. Account holders should always carry passbook when they visit the bank for doing any transactions. The passbook has all the bank details needed to do the transactions. 

Multiple choice business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

Crossed cheque is very safe cheque.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

True. 

A cross cheque is safer as compared to a bearer cheque as it is crossed i.e, has two parallel lines either on the whole cheque or top left which tells the banker that it cannot be encashed over the counter. It has to be directly deposited in the bank account of the person who's name is written on the cheque.

Multiple choice business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

Order cheque is as good as cash.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

False. A Bearer cheque is as good as cash.

 A bearer cheque is payable to anyone who holds it, hence it is as good as cash. An order cheque is payable only to a particular person whose name is mentioned in the cheque. An bearer cheque is converted into an order cheque when the words "or bearer" are cancelled and the word "order" is written.  

Multiple choice business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

Account holders are not allowed to carry withdrawal slips home.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

True. Account holders are not allowed to carry the withdrawal slips at home as there is only one part in the withdrawal slip which is kept with the bank for record purpose.

Multiple choice business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

A bearer cheque is just like a withdrawal slip. 

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

True. A bearer cheque is just like a withdrawal slip. A bearer cheque is  payable over the counter. It is transferable by mere delivery. A withdrawal slip is a slip that to be filled by the customer to withdraw money from the bank account. In both the cases money can be received over the counter.  

Multiple choice business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

Bearer cheque can be encashed by any one.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

True. A bearer cheque is a form of cheque which is payable to the bearer i.e, anyone who is holding the cheque. This can be transferred by mere delivery and there is no need for endorsement. Hence, it can be said that a bearer cheque can be encashed by anyone.

Multiple choice business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

In the case of "A/c Payee" crossing further transferability of cheque is not possible. 

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

True. In case of "A/c Payee" crossing further transferability of cheque is not possible as by writing the words "A/c Payee" it is made clear that the cheque cannot be paid to anyone else other than the person whose name is mentioned as the payee. In case of crossed cheque it can be further transferred. A crossing is basically drawing 2 parallel lines either on the whole cheque or on the top left corner of the cheque, and in "A/c Payee" crossing the word "A/c Payee" are written in between the 2 parallel lines.

Multiple choice business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

The longer part of pay-in-slip is called counter folio. 

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

False. A pay in slip is a slip which is used to deposit money in the bank account. A counter folio is that small part of the pay in slip that is kept with the depositor for record purpose.