A cheque which the bank refused to pay because the drawer had insufficient funds in his account is?
-
A.
a bounced cheque -
B.
a bearer cheque -
C.
a crossed cheque -
D.
an order cheque
Correct Answer: Option A
Explanation
A bounced cheque is a cheque which is returned by a bank because the account owner does not have sufficient funds on deposit. When someone writes a cheque to someone else or to a company, that entity in turn deposits the cheque into the bank.