Reasons for dishonouring cheques. - SS2 Commerce Past Questions and Answers - page 1

1

Why would a cheque be dishonored?

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A

Insufficient funds in the issuer's account

B

The cheque is post-dated

C

The cheque has a mismatched signature

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2

What happens when a cheque is dishonored?

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A

The recipient receives double the amount written on the cheque

B

The bank refuses to honor or accept the cheque for payment

C

The cheque is cashed immediately at the bank

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3

Which alteration on a cheque may lead to its dishonor?

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A

Adding a memo or note on the back of the cheque

B

Crossing the cheque with two parallel lines

C

Overwriting the payee's name without authorization

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4

When might a post-dated cheque be dishonored?

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A

When the recipient tries to cash it before the future date

B

When the cheque is deposited into a bank account

C

When the cheque is written in a foreign currency

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5

Why would a bank dishonor a cheque due to a stop payment request?

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A

The cheque has insufficient funds

B

The bank account is closed

C

The issuer has requested the bank not to honor the cheque

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6

What is the consequence of a dishonored cheque?

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7

Can a post-dated cheque be cashed before the future date?

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