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Business Studies

Banking Service

A is the most...

Question

A ___________ is the most developed credit instrument of the bank, for the withdrawal of deposits.

A

demand draft

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B

funds

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C

cheque

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D

none of the above

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Solution

The correct option is C
cheque

A cheque is the most developed credit instrument of the bank, for the withdrawal of deposits. It is the most convenient and an inexpensive medium of exchange.

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Q. State whether the following statements are true or false.

1) Cash memo is used for credit purchase/sale.
2) A receipt is used for cash sales.
3) Crossed cheque is a very safe cheque.
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Q. From the following particulars prepare bank reconciliation statement as on 31st March 2015:
(a) Debit balance as per Cash Book ₹ 1,500.
(b) A cheque for ₹ 2,000 issued in favour of X has not been presented for payment.
(c) A bill for ₹ 4,000 retired by bank under a rebate of ₹ 120. The full amount of the bill was credited in Cash Book.
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