Commerce WAEC

A cheque that 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

A. a bounced cheque

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.

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