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a bank draft is a cheque drawn by a bank on?

Commerce
WAEC 2018

a bank draft is a cheque drawn by a bank on?

  • A. another bank
  • B. itself
  • C. creditors
  • D. customers' deposits
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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
Correct Answer: Option B
Explanation

A bank draft is a cheque drawn by a bank on its own funds. A banker's draft, also known as a banker's cheque, is like asking a bank to write a cheque for you. You give them your money and they give you a cheque for that amount to give to the person you're paying. For this reason, they do not bounce because of a lack of funds.


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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
Join your school's WhatsApp group
NECO June/July 2024 - Get offline past questions & answers - Download objective & theory, all in one app 48789
NECO June/July 2024 - Get offline past questions & answers - Download objective & theory, all in one app 48789
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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts