8B & C FL: Money In & Out, Demand Draft

What is a cheque?

• A written order of a depositor upon a bank to pay a designated party or to a bearer

• A document that orders a payment of money from a bank account

• A type of payment order issued by a bank

• A method of transferring money from one place to another

What is a bearer cheque?

• A cheque that can be collected only by a bank from the drawer bank

• A cheque that can be cashed by the bearer of the cheque

• A cheque that is not crossed

• A cheque that is not honoured by the bank

What is an open/uncrossed cheque?

• A cheque that can be collected only by a bank from the drawer bank

• A cheque that can be cashed by the bearer of the cheque

• A cheque that is not crossed

• A cheque that is not honoured by the bank

What is a crossed cheque?

• A cheque that can be collected only by a bank from the drawer bank

• A cheque that can be cashed by the bearer of the cheque

• A cheque that is not crossed

• A cheque that is not honoured by the bank

What is an ante-dated cheque?

• A cheque that bears a date earlier than the date on which it is presented to the bank

• A cheque that bears a date which is yet to come (future date)

• A cheque that is presented for payment after three months from the date of the cheque

• A cheque that is not honoured by the bank

What is a post-dated cheque?

• A cheque that bears a date earlier than the date on which it is presented to the bank

• A cheque that bears a date which is yet to come (future date)

• A cheque that is presented for payment after three months from the date of the cheque

• A cheque that is not honoured by the bank

What is a stale cheque?

• A cheque that bears a date earlier than the date on which it is presented to the bank

• A cheque that bears a date which is yet to come (future date)

• A cheque that is presented for payment after three months from the date of the cheque

• A cheque that is not honoured by the bank

What are the benefits of using cheques?

• Secure and certain method of payment

• No chance of fake notes circulating

• Can be easily cancelled

• All of the above

What is a demand draft?

• A written order of a depositor upon a bank to pay a designated party or to a bearer

• A document that orders a payment of money from a bank account

• A type of payment order issued by a bank

• A method of transferring money from one place to another

What are the details required to send a demand draft?

• Type of demand draft, mode of payment, recipient's name, and amount

• Type of demand draft, mode of payment, issuing branch, and recipient's name

• Type of demand draft, mode of payment, issuing branch, and location the draft should be payable at

• Type of demand draft, mode of payment, issuing branch, location the draft should be payable at, recipient's name, and amount