Podcast
Questions and Answers
What is the significance of the signature of the drawer on a cheque?
What is the significance of the signature of the drawer on a cheque?
- It enables the bank to verify the account holder's identity
- It confirms the drawer's liability for the payment (correct)
- It serves as a witness to the transaction
- It indicates the account holder's consent to dishonour the cheque
How is a cheque typically transferred?
How is a cheque typically transferred?
- By issuing a new cheque in favour of the endorsee
- By endorsement and delivery of the instrument to the endorsee (correct)
- By assignment of the instrument to the endorsee
- By novation of the original agreement
What is a characteristic of a cheque as a commercial paper?
What is a characteristic of a cheque as a commercial paper?
- It is non-negotiable
- It is negotiable (correct)
- It is only transferable by novation
- It is a type of promissory note
What is the significance of endorsement on a cheque?
What is the significance of endorsement on a cheque?
What is a key aspect of a cheque's formalities?
What is a key aspect of a cheque's formalities?
What is the characteristic of a cheque that is made payable 'to bearer'?
What is the characteristic of a cheque that is made payable 'to bearer'?
What is the implication of marking a cheque as 'Not Negotiable'?
What is the implication of marking a cheque as 'Not Negotiable'?
What is the primary difference between a cheque made payable 'to bearer' and one marked 'Not Negotiable'?
What is the primary difference between a cheque made payable 'to bearer' and one marked 'Not Negotiable'?
What is the consequence of making a cheque 'Not Negotiable'?
What is the consequence of making a cheque 'Not Negotiable'?
What is the characteristic of a cheque that is marked 'Not Negotiable'?
What is the characteristic of a cheque that is marked 'Not Negotiable'?
What is the minimum requirement for a cheque to be considered valid?
What is the minimum requirement for a cheque to be considered valid?
Which of the following is a formal requirement for a cheque?
Which of the following is a formal requirement for a cheque?
What is the primary purpose of including the term 'Cheque' in a cheque?
What is the primary purpose of including the term 'Cheque' in a cheque?
Which of the following is NOT a formal requirement for a cheque?
Which of the following is NOT a formal requirement for a cheque?
What is the consequence of a cheque not meeting the formal requirements?
What is the consequence of a cheque not meeting the formal requirements?
