Types of cheque - SS2 Commerce Past Questions and Answers - page 1
Which type of cheque can only be paid to the specific person or entity mentioned as the payee?
Order cheque
Bearer cheque
Open cheque
What type of cheque can be encashed by anyone who possesses the physical document?
Open cheque
Bearer cheque
Order cheque
Which type of cheque has two parallel lines drawn across the top left corner or face of the cheque?
Open cheque
Crossed cheque
Bearer cheque
Which type of cheque offers a higher level of security as it requires the payee's endorsement?
Crossed cheque
Open cheque
Order cheque
What does an "Account Payee" crossing on a cheque indicate?
The cheque can be encashed over the counter.
The cheque is payable to the bearer.
The cheque should be deposited into a bank account.
Define an open cheque in simple terms.
An open cheque is a cheque that can be encashed over the counter without any specific restrictions or markings.
Why is a crossed cheque considered more secure than an open cheque?
A crossed cheque is more secure because it can only be deposited into a bank account, reducing the risk of loss or theft and ensuring the payment is directly credited to the intended recipient's account.