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WAEC Commerce 1993 Question 51

Question 51

Banking

A bank may dishonour a cheque if

  1. A.it is not crossed
  2. B.an alteration on the cheque is initiated
  3. C.the amount on the cheque is less than the amount in the account
  4. D.it has been endorsed to a third party
  5. E.the amount on the cheque is more than the amount in the account
Show the answer and explanation

Answer: E (the amount on the cheque is more than the amount in the account)

Explanation

If there are not enough funds in the account, the bank refuses to pay the cheque.