64 Questions
What is a cheque?
A written order to pay a specified amount of money
What does the 'Personal Information' section of a cheque provide?
Details about the account owner who is paying money
What does a cheque format typically include?
Personal information about the account owner
What is the purpose of a cheque?
To instruct a financial institution to pay a specified amount of money
What does the payee line on a check specify?
The person or organization who will receive the funds
Which part of the check displays the numerical value of the check?
Amount in box
What is the purpose of the memo line on a check?
To provide additional notes about the purpose of the check
What information is usually written at the top right corner of a check?
Date of issue
What type of cheque is only payable to the person named on the check and requires a background check before releasing payment?
Order Cheque
What type of cheque is identifiable by two parallel lines and the words 'a/c payee' on the top left?
Crossed Cheque
Which type of cheque is payable to anyone who presents the check and can be transferred from one payee to another?
Open Cheque
What type of cheque is identified by the words 'or bearer' printed on it?
Bearer Cheque
What does a post-dated cheque refer to?
Payments scheduled for a later date, regardless of when the check is presented to the bank.
What does the routing number on a cheque represent?
Unique identifier for the issuing bank.
What is the term used for a cheque that is no longer valid after three months from the date of issue?
Stale Cheque
Which type of cheque can only be drawn at the issuer's bank?
Self Cheque
Who is the issuer of a Banker’s Cheque?
The bank
What is the main reason for Banker’s Cheques to be called non-negotiable instruments?
There is no room for banks to dishonour them
What do foreigners on vacations usually carry instead of hard cash?
Traveller's Cheques
How long are Traveller’s cheques valid for?
They do not expire
What happens to the specified amount in a Banker’s Cheque when it is issued?
It is debited from the account of the customer
How are self cheques identified?
They have 'self' written in the drawee column
What does it mean when it is said that Traveller’s cheques do not expire?
They have no expiration date
What is the term used for a cheque issued by a bank on behalf of an account holder to make a remittance to another person in the same city?
Banker's Cheque
Why are Banker’s cheques called non-negotiable instruments?
There is no room for banks to dishonor them
Cheques are a form of electronic payment.
False
The 'Personal Information' section of a cheque provides details about the account owner.
True
A cheque is a written order instructing a financial institution to pay a specified amount of money immediately on demand.
True
The 'Personal Information' section of a cheque includes the account owner's name, home address, and phone number.
True
Traveller’s cheques do not expire and can be used for future trips.
True
Self cheques can only be drawn at the issuer’s bank.
True
Banker’s cheques are valid for six months.
False
Foreigners on vacations carry traveller’s cheques instead of carrying hard cash.
True
Stale cheques remain valid after the specified date.
False
Banker’s cheques are called non-negotiable instruments because banks cannot dishonor them.
True
Traveller’s cheques are typically issued by multiple banks.
False
Banker’s cheques are issued by the bank on behalf of an account holder for international remittances.
False
The specified amount in a Banker’s Cheque is credited to the account of the customer.
False
A self cheque can be identified by the word 'self' written in the drawee column.
True
Traveller’s cheques are cumbersome to carry during vacations.
False
Stale cheques are valid for three months after the date of being issued.
True
Bearer cheques are only payable to the person named on the check.
False
A post-dated cheque can be cashed in before the date mentioned on the cheque.
False
An order cheque requires the bank to perform a background check on the cheque bearer before releasing payment.
True
Open cheques can be transferred from one payee to another.
True
Crossed cheques are identified by the words 'or bearer' printed on them.
False
The memo line on a check is used to specify the purpose of the check.
True
The routing number on a cheque represents the unique identifier for the issuing bank.
True
The account number on a cheque represents the unique identifier for the account from which funds will be withdrawn.
True
Bearer cheques are identifiable by two parallel lines and the words 'a/c payee' on the top left.
False
The signature on a cheque authorizes the payment.
True
Traveller’s cheques do not expire.
True
Payments made to the person carrying the check and transferable by delivery are known as order cheques.
False
Match the following parts of a cheque with their descriptions:
Personal Information = Provides details about the account owner Cheque format = An overview of the different parts of a cheque Home address = Part of the personal information section on a cheque Phone number = Part of the personal information section on a cheque
Match the following types of cheques with their descriptions:
Bearer cheque = Identifiable by two parallel lines and the words 'a/c payee' on the top left Order cheque = Only payable to the person named on the check and requires a background check before releasing payment Banker’s cheque = Issued by a bank on behalf of an account holder for remittances Traveller’s cheque = Valid for future trips and used by foreigners on vacations
Match the following terms related to cheques with their meanings:
Post-dated cheque = A cheque that can be cashed in after the date mentioned on the cheque Stale cheque = No longer valid after three months from the date of issue Crossed cheque = Identified by the words 'or bearer' printed on it Memo line = Used to specify the purpose of the check
Match the following actions with their results in relation to cheques:
Signature on a cheque authorizes payment. = Authorization for payment Banker’s cheque issued for international remittances. = Credit to the account of the customer Routing number on a cheque represents unique identifier for issuing bank. = Identification of issuing bank Foreigners on vacations carry traveller’s cheques instead of hard cash. = Preferable form of payment for foreigners
Match the following parts of a check with their descriptions:
Payee line = Specifies who will receive the funds, written as the name of the person or organization. Signature = Authorizes the payment. Routing number = Unique identifier for the issuing bank. Cheque number = Unique identifier for each check.
Match the following types of cheques with their descriptions:
Stale Cheque = A cheque past its validity, three months after the date of being issued Traveller’s Cheque = Foreigners on vacations carry these instead of hard cash, which can be cumbersome Self Cheque = Can only be drawn at the issuer’s bank Banker’s Cheque = Issued by a bank on behalf of an account holder for remittance to another person in the same city
Match the following types of cheques with their descriptions:
Bearer Cheque = Payments made to the person carrying the check, transferable by delivery. Identified by the words 'or bearer' printed on them. Crossed Cheque = Payments made only to the person named on the check, as well as their account number. Identified by two parallel lines and the words 'a/c payee' on the top left. Open Cheque = Payable to anyone who presents the check. Can be transferred from one payee to another. The issuer must sign both sides. Post-Dated Cheque = Payments scheduled for a later date, regardless of when the check is presented to the bank. The bank only processes the payment on the mentioned date.
Match the following types of cheques with their characteristics:
Stale Cheque = Remains valid after the specified date Traveller’s Cheque = Do not expire and can be used for future trips Self Cheque = Identifiable by the word ‘self’ written in the drawee column Banker’s Cheque = Valid for three months and can be revalidated under specific conditions
Match the following types of cheques with their issuer:
Stale Cheque = N/A Traveller’s Cheque = One bank Self Cheque = The issuer Banker’s Cheque = A bank
Match the following check details with their functions:
Amount in box = Displays the numerical value of the check. Memo line = Space for additional notes about the purpose of the check. Bank contact information and/or logo = Identifies the issuing bank. Date of Issue = Date the check was written, usually at the top right corner.
Match the following types of cheques with their primary usage:
Stale Cheque = N/A Traveller’s Cheque = Used by foreigners on vacations instead of carrying hard cash Self Cheque = N/A Banker’s Cheque = Used for remittance to another person in the same city
Study Notes
- Checks allow individuals to transfer funds from their checking account to designated payees.
- Payee line: Specifies who will receive the funds, written as the name of the person or organization.
- Amount in box: Displays the numerical value of the check.
- Amount of check: Written out in words.
- Memo line: Space for additional notes about the purpose of the check.
- Date of Issue: Date the check was written, usually at the top right corner.
- Signature: Authorizes the payment.
- Bank contact information and/or logo: Identifies the issuing bank.
- Routing number: Unique identifier for the issuing bank.
- Account number: Unique identifier for the account from which funds will be withdrawn.
- Cheque number: Unique identifier for each check.
Types of Cheques:
-
Bearer Cheque: Payments made to the person carrying the check, transferable by delivery. Identified by the words "or bearer" printed on them.
-
Order Cheque: Only payable to the person named on the check. The bank performs a background check on the cheque bearer before releasing payment.
-
Crossed Cheque: Payments made only to the person named on the check, as well as their account number. Identified by two parallel lines and the words "a/c payee" on the top left.
-
Open Cheque: Payable to anyone who presents the check. Can be transferred from one payee to another. The issuer must sign both sides.
-
Post-Dated Cheque: Payments scheduled for a later date, regardless of when the check is presented to the bank. The bank only processes the payment on the mentioned date.
-
Checks allow individuals to transfer funds from their checking account to designated payees.
-
Payee line: Specifies who will receive the funds, written as the name of the person or organization.
-
Amount in box: Displays the numerical value of the check.
-
Amount of check: Written out in words.
-
Memo line: Space for additional notes about the purpose of the check.
-
Date of Issue: Date the check was written, usually at the top right corner.
-
Signature: Authorizes the payment.
-
Bank contact information and/or logo: Identifies the issuing bank.
-
Routing number: Unique identifier for the issuing bank.
-
Account number: Unique identifier for the account from which funds will be withdrawn.
-
Cheque number: Unique identifier for each check.
Types of Cheques:
-
Bearer Cheque: Payments made to the person carrying the check, transferable by delivery. Identified by the words "or bearer" printed on them.
-
Order Cheque: Only payable to the person named on the check. The bank performs a background check on the cheque bearer before releasing payment.
-
Crossed Cheque: Payments made only to the person named on the check, as well as their account number. Identified by two parallel lines and the words "a/c payee" on the top left.
-
Open Cheque: Payable to anyone who presents the check. Can be transferred from one payee to another. The issuer must sign both sides.
-
Post-Dated Cheque: Payments scheduled for a later date, regardless of when the check is presented to the bank. The bank only processes the payment on the mentioned date.
-
Checks allow individuals to transfer funds from their checking account to designated payees.
-
Payee line: Specifies who will receive the funds, written as the name of the person or organization.
-
Amount in box: Displays the numerical value of the check.
-
Amount of check: Written out in words.
-
Memo line: Space for additional notes about the purpose of the check.
-
Date of Issue: Date the check was written, usually at the top right corner.
-
Signature: Authorizes the payment.
-
Bank contact information and/or logo: Identifies the issuing bank.
-
Routing number: Unique identifier for the issuing bank.
-
Account number: Unique identifier for the account from which funds will be withdrawn.
-
Cheque number: Unique identifier for each check.
Types of Cheques:
- Bearer Cheque: Payments made to the person carrying the check, transferable by delivery. Identified by the words "or bearer" printed on them.
- Order Cheque: Only payable to the person named on the check. The bank performs a background check on the cheque bearer before releasing payment.
- Crossed Cheque: Payments made only to the person named on the check, as well as their account number. Identified by two parallel lines and the words "a/c payee" on the top left.
- Open Cheque: Payable to anyone who presents the check. Can be transferred from one payee to another. The issuer must sign both sides.
- Post-Dated Cheque: Payments scheduled for a later date, regardless of when the check is presented to the bank. The bank only processes the payment on the mentioned date.
Test your knowledge of banking terminology with this quiz focusing on cheques. Learn about the format, parts, and types of cheques, as well as their purpose and usage in financial transactions.
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