Kinds of Negotiable Instruments
Statement I: A bank draft can be drawn only by a bank on another bank or on its own branch.
Statement II: A bank draft can be made payable to bearer.
Select correct answer from the options given below -

Statement I is correct but Statement II is incorrect.

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Statement I is incorrect but Statement II is correct.

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Both Statement I and Statement II are correct.

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Both Statement I and Statement II are incorrect.

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Solution

The correct option is A Statement I is correct but Statement II is incorrect.
A bank draft is a payment on behalf of a payer that is guaranteed by the issuing bank. Typically, banks will review the bank draft requester's account to see if sufficient funds are available for the check to clear. It can be drawn only by a bank on another bank or on its own branch.

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Kinds of Negotiable Instruments Statement I: A bank draft can be drawn only by a bank on another bank or on its own branch. Statement II: A bank draft can be made payable to bearer.Select correct answer from the options given below -

Kinds of Negotiable Instruments
Statement I: A bank draft can be drawn only by a bank on another bank or on its own branch.
Statement II: A bank draft can be made payable to bearer.
Select correct answer from the options given below -