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GCE Commerce 1990 Question 93

Question 93

Banking

A cheque made payable to "bearer"

  1. A.can be negotiated for cash by the drawer only
  2. B.can only be paid into an account
  3. C.can be negotiated for cash by any holder
  4. D.is not regarded as a negotiable instrument
  5. E.must be endorsed to another account for settlement
Show the answer and explanation

Answer: C (can be negotiated for cash by any holder)

Explanation

A bearer cheque is paid to whoever presents it, without endorsement.