WAEC Commerce 2006 Question 19

Question 19

Banking

Use the diagram (a Penny Bank PLC, Lagos Branch cheque dated 5th May 2006: 'Pay Udoka A. O. or Order the sum of Ten Thousand Naira Only', ₦10,000, signed John Uwa) to answer the question. The above document is

Diagram for this question
  1. A.foreign bill of exchange
  2. B.promissory note
  3. C.money order
  4. D.cheque
Show the answer and explanation

Answer: D (cheque)

Explanation

It is a written order on a bank to pay a named person: a cheque.