What does a crossed cheque normally require before its proceeds can be paid to the recipient?
Correct answer: A. Deposit into a bank account
- A. Deposit into a bank account
- B. Payment in foreign currency
- C. Approval by a stock exchange
- D. Conversion into a bond
Explanation
A crossed cheque is generally collected through a bank account rather than being paid directly over the counter in cash. Crossing improves the traceability and safety of cheque payments.
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About Finance and Banking Basics
Business finance covers capital requirements, sources of funds, budgeting, cash flow, investment decisions and basic financial statements and ratios. Banking includes commercial bank functions, deposits, loans, credit creation, interest and the role of a central bank, including its monetary policy and regulatory functions.
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