Question 21
Financial InstitutionsWhich of the following statements is not true of cheques? They
- A.provide an alternative to carrying large sums of money around
- B.can be written out for any amount needed
- C.are legal tender
- D.provide a form of receipt
- E.provide a record of payments made.
Show the answer and explanation
Answer: C (are legal tender)
Explanation
A cheque is not legal tender: nobody is forced by law to accept it in payment.