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
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
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
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
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
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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