Tag: cheques

Questions Related to cheques

A cheque in which bank makes cash payment to any one who presents cheque on the counter of the bank __________.

business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

  1. Cross cheque

  2. Demand cheque

  3. Order cheque

  4. Bearer cheque

Show answer
Correct Option: D
Explanation:

A cheque in which bank makes cash payments to anyone who presents cheque on the counter of the bank is a Bearer cheque. It is payable to bearer i.e, anyone who presents it in the bank for encashment. Bearer cheques can be transferred by mere delivery.

 _____________ is used by the account holder for depositing cash/cheques into the bank.

business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

  1. Receipt

  2. Voucher

  3. Pay-in-slip

  4. Withdrawl slip

Show answer
Correct Option: C
Explanation:

Pay in slip as the name suggests is a slip that is filled by the customer to deposit money in the bank account either by cash or by cheque. The things that need to be filled in a pay in slip are the account details in which the money is to be deposited, amount to be deposited by cash or by cheque, and the signature of the depositor.

Account holders are required to carry a passbook whenever he goes to the bank to do banking transaction.

business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

True. Account holders should always carry passbook when they visit the bank for doing any transactions. The passbook has all the bank details needed to do the transactions. 

Crossed cheque is very safe cheque.

business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

True. 

A cross cheque is safer as compared to a bearer cheque as it is crossed i.e, has two parallel lines either on the whole cheque or top left which tells the banker that it cannot be encashed over the counter. It has to be directly deposited in the bank account of the person who's name is written on the cheque.

Order cheque is as good as cash.

business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

  1. True

  2. False

Show answer
Correct Option: B
Explanation:

False. A Bearer cheque is as good as cash.

 A bearer cheque is payable to anyone who holds it, hence it is as good as cash. An order cheque is payable only to a particular person whose name is mentioned in the cheque. An bearer cheque is converted into an order cheque when the words "or bearer" are cancelled and the word "order" is written.  

Account holders are not allowed to carry withdrawal slips home.

business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

True. Account holders are not allowed to carry the withdrawal slips at home as there is only one part in the withdrawal slip which is kept with the bank for record purpose.

A bearer cheque is just like a withdrawal slip. 

business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

True. A bearer cheque is just like a withdrawal slip. A bearer cheque is  payable over the counter. It is transferable by mere delivery. A withdrawal slip is a slip that to be filled by the customer to withdraw money from the bank account. In both the cases money can be received over the counter.  

Bearer cheque can be encashed by any one.

business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

True. A bearer cheque is a form of cheque which is payable to the bearer i.e, anyone who is holding the cheque. This can be transferred by mere delivery and there is no need for endorsement. Hence, it can be said that a bearer cheque can be encashed by anyone.

In the case of "A/c Payee" crossing further transferability of cheque is not possible. 

business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

True. In case of "A/c Payee" crossing further transferability of cheque is not possible as by writing the words "A/c Payee" it is made clear that the cheque cannot be paid to anyone else other than the person whose name is mentioned as the payee. In case of crossed cheque it can be further transferred. A crossing is basically drawing 2 parallel lines either on the whole cheque or on the top left corner of the cheque, and in "A/c Payee" crossing the word "A/c Payee" are written in between the 2 parallel lines.

The longer part of pay-in-slip is called counter folio. 

business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

  1. True

  2. False

Show answer
Correct Option: B
Explanation:

False. A pay in slip is a slip which is used to deposit money in the bank account. A counter folio is that small part of the pay in slip that is kept with the depositor for record purpose.