When an order Cheque is endorsed it becomes a
When an order Cheque is endorsed it becomes a
- A) Credit transfer
- B) Bank endorsement
- C) Standing order
- D) Bank overdraft
Correct Answer: C) Standing order
Explanation
When an order cheque is endorsed, it becomes a standing order.An order cheque is a type of cheque that is payable only to a specific person or business. It cannot be cashed by anyone else.
Endorsing a cheque means signing the back of the cheque to transfer the ownership of the cheque to someone else. When an order cheque is endorsed, it can be used as a standing order.
A standing order is an instruction given to a bank by an account holder to make regular payments of a fixed amount to another account. For example, if you have a standing order set up to pay your monthly phone bill, the bank will automatically transfer the specified amount from your account to the phone company every month.
So, when an order cheque is endorsed, it can be used as a standing order to make regular payments.
Therefore, the correct option is C: Standing order.