Question

What is the role of “Negotiable Instruments” like cheques and bills of exchange in commercial banking?

• A. They serve as a medium of exchange and facilitate credit operations
• B. They represent ownership of bank capital
• C. They are issued only by the government for treasury operations
• D. They act as collateral for loans only

Answer 1

Answer:

A. They serve as a medium of exchange and facilitate credit operations

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