Question

200 words define cheque​

Answer 1

A cheque, or check (American English; see spelling differences), is a document that orders a bank to pay a specific amount of money from a person's account to the person in whose name the cheque has been issued.

A cheque is a printed form on which you write an amount of money and who it is to be paid to. Your bank then pays the money to that person from your account. He wrote them a cheque for £10,000. [ + for] I'd like to pay by cheque.

Some different types of cheques are-

• Bearer Cheque.

• Order Cheque.

• Crossed Cheque.

• Open cheque.

• Post-Dated Cheque.

• Stale Cheque.

• Traveller's Cheque.

• Self Cheque.

Advantages of making payments by cheque

• It is more convenient than carrying cash around.

• Payments can be stopped if necessary.

• Cheques are safer if crossed.

• One does not have to count notes and risk making counting mistakes.

• A cheque can be drawn up anytime.

Features of a cheque

• A cheque should be in writing and properly signed by the drawer.

• A cheque contains an unconditional order.

• A cheque issued on a specified banker only.

• The amount specified is always certain and should be clearly mentioned both in figures and words.

• The payee of a cheque is always certain.