CSEET · Business Communication · Common Business Terminologies
A cheque bears a date that is more than three months old when it is presented to the bank for payment. The bank will normally refuse to pay it. Such a cheque is called:
It is a stale cheque. A cheque becomes stale when it is presented to the bank after three months from its date, and the bank will normally refuse payment. A post-dated cheque has a future date, while crossed and bearer cheques concern how payment is made.
- APost-dated cheque
- BStale chequeCorrect
- CCrossed cheque
- DBearer cheque
Explanation
A cheque presented after the validity period of three months from its date is a stale cheque, and banks do not honour it. A post-dated cheque carries a future date. A crossed cheque has two parallel lines and is payable only through a bank account. A bearer cheque is payable to whoever holds it.
Did you get it right without looking?
One question tells you little. A timed set on Common Business Terminologies shows your real accuracy, how long you take and where you lose marks.
More Common Business Terminologies questions
- Which document, issued by a carrier or its agent, acts as a receipt for goods shipped, evidence of the contract of carriage and, in its nego…
- An invoice carries the terms '2/10, net 30'. A buyer with an invoice of ₹50,000 pays on the eighth day. What does the buyer pay, and what is…
- Which one of the following statements about the term 'KYC' in banking is correct?
- Which of the following pairs correctly matches a corporate term with its meaning?
- Which of the following best describes the term 'collateral' in a loan agreement?
- The term 'letterhead' in office correspondence refers to: