Tag: bills of exchange and promissory note

Questions Related to bills of exchange and promissory note

Generally, the use of withdrawal slips is restricted to __________ account.

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

  1. Fixed

  2. Current

  3. Savings

  4. Recurring

Show answer
Correct Option: C
Explanation:

Generally, the use of withdrawal slips are restricted to savings account. Many times a cheque is not issued to savings account holders to help customers withdraw money they are generally used in savings account.

 In case of current accounts, there is no need of withdrawal slips because cheque books are given by default and money can be withdrawn by a bearer cheque.

The pay in slips for different types of accounts like savings, current, etc are _____________.

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

  1. Different

  2. Same

  3. Universal

  4. None of the above

Show answer
Correct Option: A
Explanation:

The pay in slips for different types of account are different. The details asked in the pay in slips do not ask whether the account is current or savings and therefore different pay in slips are given so as to differentiate between them. 

______________ on the front and back side of the withdrawal slip are to be matched with the specimen available with the bank.

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

  1. Signatures

  2. Stamps

  3. Dates

  4. Amounts

Show answer
Correct Option: A
Explanation:

The signatures of withdrawal slips and specimens available with the bank should match compulsorily. The bank has a specimen of the signature that is the signature that you do while you are opening your bank account. Both should match so that the bank is sure that the right person is withdrawing money and the transaction is real.

There is no need to mention the name of any person on the withdrawal slip.

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

  1. True

  2. False

Show answer
Correct Option: B
Explanation:

False. The person withdrawing money from a withdrawal slip should write the name and other details so asked in the withdrawal slip. 

A withdrawal slip is a/an __________ document.

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

  1. Bearer

  2. Basic

  3. Stamped

  4. Rough

Show answer
Correct Option: A
Explanation:

A withdrawal slip is a bearer document. A withdrawal slip is paid to the person who presents the same having the right to do so just like a bearer document. Bearer means the person holding the document,

The signatures on the withdrawal slips and the specimen available with the bank should match compulsorily.

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

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

True. The signatures of withdrawal slips and specimens available with the bank should match compulsorily. The bank has a specimen of the signature that is the signature that you do while you are opening your bank account. Both should match so that the bank is sure that the right person is withdrawing money and the transaction is real.

Following are the types of bank documents except for ___________.

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

  1. Withdrawal slip

  2. Pay in slip

  3. Land agreement

  4. Cheque

Show answer
Correct Option: C
Explanation:

The various documents of the bank are withdrawal slip to withdraw money, pay in slip to deposit money and a cheque to make payments and receive payments. In the given question all the documents are bank documents except a land agreement.

Amounts on the withdrawal slips are to be mentioned in figures as well as words.

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

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

True. The amounts on the withdrawal slips are to be mentioned in figures as well as words. Both are to be mentioned to confirm the figures and to ensure that the banker is able to read properly. The cheque will be passed only when both the figures match. 

A document which is used in place of cheque for withdrawing amounts from bank is a/an ____________.

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

  1. Pay in slip

  2. Counterfoil

  3. Withdrawal slip

  4. Receipt

Show answer
Correct Option: C
Explanation:

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 and amount can be withdrawn by the customer.

All the documents which are used by the account holders to facilitate transactions with bank are collectively known as __________ documents.

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

  1. Legal

  2. Bank

  3. Deposit

  4. Withdrawal

Show answer
Correct Option: B
Explanation:

All the documents which are used by the account holders to facilitate transactions with bank are collectively known as bank documents. Bank documents include pay in slip to deposit money, withdrawal slip to withdraw money and cheques to make and receive payments.