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Which statement about cheques and bills of exchange is correct?
AA cheque can be payable after a fixed period
BAll bills of exchange are cheques
CA cheque need not be drawn on a banker
DAll cheques are bills of exchange, but all bills of exchange are not cheques
Answer & Solution
Correct answer: D. All cheques are bills of exchange, but all bills of exchange are not cheques
A cheque is a special bill (drawn on a banker, payable on demand), so every cheque is a bill but not every bill is a cheque.
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