What does NSF stand for in the context of a bounced cheque?
A) No Service Fee
B) Not Sufficient Funds
C) Non-Stop Financing
D) No Signature Found
Answer: B) Not Sufficient Funds
What is a demand draft primarily used for?
A) Personal shopping
B) International travel
C) Secure online transactions
D) Making secure payments to a third party
Answer: D) Making secure payments to a third party
Can a demand draft be easily transferred to another person?
A) Yes
B) No, it’s not allowed
C) Only with the bank’s permission
D) Only through online banking
Answer: B) No, it’s not allowed
How is a demand draft different from a regular cheque?
A) It is less secure
B) It cannot be used for payments
C) It is easier to counterfeit
D) It is harder to counterfeit
Answer: D) It is harder to counterfeit
What is the main purpose of a demand draft?
A) To withdraw cash from ATMs
B) To pay for online purchases
C) To transfer money to a friend
D) To guarantee a specific payment to a payee
Answer: D) To guarantee a specific payment to a payee
What is typically mentioned on a demand draft?
A) The account holder’s address
B) The payee’s address
C) The payee’s name and the payment amount
D) A barcode for scanning
Answer: C) The payee’s name and the payment amount
Which of the following is not a security feature of a demand draft?
A) Watermark
B) Hologram
C) Magnetic strip
D) Color-changing ink
Answer: C) Magnetic strip
