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📝 SSC CGL📈 Economy

Which of the following is not true about a Demand Draft?

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Which of the following is not true about a Demand Draft?
aIt is a negotiable instrument.
bIt is a banker's cheque.
cIt may be dishonored for lack of funds.
dIt is issued by a bank.
✓ Correct answer: c) It may be dishonored for lack of funds.
ExplanationDemand Draft cannot be dishonored by the Bank for the lack of funds.This is because Demand Draft guarantees the amount of money for which it is pledged and that money is taken before the draft is issued.Demand draft is a negotiable instrument that is similar to a bill of exchange.Bank issues a demand draft to its client, directing another bank or its branch to pay a certain sum to a specific party.Hence, the correct answer is “It may be dishonored for lack of funds”.
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