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    Question

    A Bank Draft is:

    A Very much like Cheque Correct Answer Incorrect Answer
    B Promissory Note Correct Answer Incorrect Answer
    C Not a Negotiable Instrument Correct Answer Incorrect Answer
    D Bill of Exchange Correct Answer Incorrect Answer

    Solution

    A draft is very much like cheque. A Demand Draft is a negotiable instrument issued by a bank to a client, directing another bank or one of its own branches to pay a certain sum to the specified party. Demand drafts are safer than cheques in the respect that they can't be dishonored unlike the cheques.

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