Financial Awareness - Risk, Stability & Emerging Finance
Which of the following statements about Demand Draft (DD) is CORRECT?
Which of the following statements about Demand Draft (DD) is CORRECT?
hard Q9 of 15
Step-by-Step Solution
Step 1: Understand Demand Draft nature
Demand Draft is a negotiable instrument used to transfer money, not a deposit.Step 2: Analyze options
It is not a bank deposit, does not earn interest, and does not have tenure requirements.Step 3: Explain incorrect options
Being a deposit or earning interest is incorrect. Fixed tenure applies only to Time Deposits.Final Answer:
It is a negotiable instrument used for transferring money → Option AQuick Check:
Demand Draft = Negotiable instrument for money transfer ✅
Quick Trick: Demand Draft = Payment instrument, not deposit
Common Mistakes:
- Confusing Demand Draft as a deposit or interest-earning instrument.
Master "Risk, Stability & Emerging Finance" in Financial Awareness
Start learning the concept with an interactive lesson.
Want More Practice?
15+ quiz questions · All difficulty levels · Free
Free Signup - Practice All QuestionsMore Financial Awareness Quizzes