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Characteristics of Money

A cheque is a...

Question

A cheque is a ________.

A

promissory note

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B

bill of exchange

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C

both a and b

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D

none of the above.

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Solution

The correct option is C bill of exchange
According to Section 6 of the Negotiable Instruments Act, 1881; a cheque is a bill of exchange drawn on a specified banker and expressed to be payable on demand and it includes the electronic image of a truncated cheque and a cheque in the electronic form.

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