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Cheques Revision Activity

Total questions: 22

Worksheet time: 11mins

Name
Class
Date
1.

What are the three main types of cheques?

a)

Order, closed, and open

b)

Open, bearer, and crossed

c)

Open, fixed, and closed

d)

Open, dishonored, and crossed

2.

A stale cheque is one that is no longer valid after what period from the date of issue?

a)

1 month

b)

3 months

c)

6 months

d)

1 year

3.

What is the main purpose of "crossing" a cheque?

a)

To allow it to be cashed at the ATM

b)

To allow it to be cashed at the counter

c)

To provide a means of tracing it, often by requiring it to be deposited into an account

d)

To supply a special endorsement

4.

Who is the "drawer" of a cheque?

a)

The bank on which the cheque is drawn

b)

The person to whom the cheque is payable

c)

The person who is ordered to pay the amount on the cheque

d)

The person who signs the cheque and orders payment

5.

Which type of crossing is considered the safest?

a)

Special crossing

b)

General crossing

c)

Double crossing

d)

None of the above

6.

A cheque that is payable to a specific person or their order is called:

a)
Order cheque
b)
Bearer cheque
c)
Cash cheque
d)
Blank cheque
7.

How many parties are there to a cheque?

a)
5
b)
3
c)
4
d)
2
8.

Assume that you went into the bank today to cash a cheque and you look at the date on the cheque and realize that it has the date 28/02/2026. That cheque is:

a)

Stale-dated

b)
Expired and cannot be cashed
c)

Post-dated

d)

Valid for cashing today

9.

What is another name for a 'bounced' cheque?

a)

Stopped Cheque

b)

Cancelled Cheque

c)

Dishonoured Cheque

d)

Stale Cheque

10.

Which of these is NOT a key element of a cheque?

a)

Reference Number

b)

Date

c)

Amount in Figures

d)

Amount in Words

11.

Which of these is NOT a disadvantage of using cheques?

a)

Businesses may face a charge when processing cheques

b)

You can pay large amounts of money at once

c)

Cheques take up to 3 days to clear

d)

Cheque books must be available to use

12.

Cheque is a….................… instrument

a)

Credit Instrument

b)

Debit Instrument

c)

Cash Instrument

d)

None of the above

13.

The person who receives the payment of credit instrument is known as?

a)
Payee
b)

Payer

c)

Drawee

d)

Drawer

14.

Endorsement signifies that the.....?

a)
entity is unaware of the situation at hand
b)
person or entity supports or approves something
c)
person or entity rejects or disapproves something
d)
individual or group remains neutral on an issue
15.

The saying cheques should be endorsed mean...

a)
A cheque is valid without a date or amount.
b)
A cheque must be printed on special paper only.
c)
A cheque can be cashed without any signature.
d)
A cheque must be signed on the back to authorize its transfer.
16.

............ is an electronic method of fund transfer from one account to other account.

a)

Electronic Clearing System (ECS)

b)
Bank Transfer Service (BTS)
c)
Direct Deposit Transfer (DDT)
d)
Automated Payment System (APS)
17.

Crossed cheques are generally crossed in the following manner

a)

( )

b)

| |

c)

/ /

d)

_ _

18.

A cheque that can be cashed by anyone who presents it at the bank, without needing to prove their identity, is called:

a)

Order Cheque

b)

Bearer's Cheque

c)

Crossed Cheque

d)

Post-dated Cheque

19.

A cheque is a:

a)

Written promise to pay a specific amount of money at a later date

b)

Card used to withdraw money from a bank account at an ATM

c)

Written order instructing a bank to pay a specific amount of money

d)

Document confirming the deposit of money into a bank account

20.

What phrase, usually written on a cheque, instructs the bank to pay the specified amount to the named person or their order?

a)

Kindly pay

b)

Non negotiable

c)

Pay to the order of

d)

Account Payee Only

21.

Payments of cheques can be stopped by...........

a)
Waiting for the cheque to expire
b)
Cancelling the cheque at the issuing bank
c)
Notifying the payee of the cancellation
d)
Issuing a stop payment order to the bank
22.

What is a counter cheque?

a)
A counter cheque is a personal cheque for online payments.
b)
A counter cheque is a type of credit card transaction.
c)
A counter cheque is a cheque used for international transfers.
d)
A counter cheque is a bank-issued cheque for cash withdrawal.