Commercial Applications
…………… is not a legal tender and the creditor may refuse to accept it.
- Bank Draft
- Cheque
- Overdraft
- Cash
Answer
Cheque
Reason — As stated in the chapter under disadvantages of payment by cheques: "Cheques are not legal tender and a creditor may refuse to accept a cheque in payment." Currency issued by the monetary authority is legal tender and must be accepted in settlement of a debt. A creditor has the right to refuse payment by cheque.
Related Questions
The …………… is an extract or copy of the customer's account in the bank's ledger as on a particular date.
- Passbook
- Pay-in-slip book
- Cheque book
- Withdrawal form
Central bank is the sole …………… of the country's foreign currency reserve.
- Dealer
- Consumer
- Custodian
- User
Identify an example of Nationalized Bank ……………
- Union Bank of India and State Bank of India
- Citi Bank and HDFC Bank
- ICICI Bank and Axis Bank
- American Express Bank and Yes Bank
Private Banks are the banks which are ……………
- owned and controlled by government
- owned and controlled by private businessmen
- owned and controlled by foreign banks
- owned by central Bank and managed by government