Question

Name any two types of commonly used negotiable instruments

Answer 1

Following are the two types of negotiable instruments which are commonly used:

1. Cheque - Cheque is a written negotiable instrument which orders a bank to pay the stated amount of sum to the holding the instrument.

2. Promissory note - Promissory note is a written negotiable instrument which issues a promise from the issuer to the bearer to pay the sum amount of money after a specified date in future.