Question

Which of the following is the most safe cheque?

• A. Bearer cheque
• B. Crossed cheque
• C. Both (A) and (B)
• D. None of the above

Hint:

When dealing with cheques, crossed cheques provide greater security as they ensure that the funds are deposited into a bank account and cannot be cashed by just anyone.

Answer 1

The Correct Option is B

Step 1: Understanding cheque types.
There are different types of cheques, each with its level of security. Some can be cashed by anyone who possesses them, while others provide more security by restricting who can cash them.
Step 2: Analyzing the options.
- (A) Bearer cheque: A bearer cheque can be cashed by anyone who holds it, making it very risky because it can be misused if lost or stolen.

- (B) Crossed cheque: A crossed cheque is safer because it can only be deposited into the bank account of the person or entity it is written to. This reduces the risk of misuse.

- (C) Both (A) and (B): This option is incorrect because bearer cheques are not as safe as crossed cheques.

- (D) None of the above: Incorrect, as crossed cheques are indeed safer than bearer cheques.
Step 3: Conclusion.
The correct answer is (B) Crossed cheque because it is the most secure option, ensuring the cheque can only be deposited into a bank account.