Which of the following is called a 'banker's cheque'? (a) DD (b) IPO (c) FD (d) RD

By Ritesh|Updated : October 31st, 2022

DD is called a 'banker's cheque'. A banker's check is also referred to as a DD (Demand Draft). A demand draught is a non-negotiable document that the bank issues on the client's behalf. The branch that issues the check and the branch that pays it are two separate entities. A DD is effective for three months.

Banker's Cheque

  • Initial Public Offering, or IPO. It is a procedure by which private businesses raise money by initially issuing shares to the general public. As a result, the business is now listed on a stock exchange.
  • Fixed Deposit is referred to as FD. It is a kind of financial product that enables a consumer to deposit money safely with banks for a predetermined amount of time in exchange for a greater rate of interest. The consumer receives both the principal and interest at the end of the grace period.
  • Recurring Deposit is referred to as RD. It is a sort of term deposit where a consumer can make consistent monthly deposits or saves in their bank account and earn an interest rate.

Demand draft Types

There are two sorts of demand draughts:

  • Demand draughts that are approved and paid on sight must first have certain documentation verified. If any of the needed documents are not presented, the payee will not be able to receive any money.
  • A time demand draught (time DD) cannot be drawn from the bank before that time period, and it is only due after that time period.

Summary:

Which of the following is called a 'banker's cheque'? (a) DD (b) IPO (c) FD (d) RD

DD is referred to as a "banker's check." Another name for a banker's check is a DD (Demand Draft). A non-negotiable document that the bank issues on the client's behalf are a demand draught. The branch issuing the check and the branch cashing it are two different organisations. The duration of a DD is three months.

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