When an Order Cheque is endorsed it becomes a
COMMERCE
POST UTME OAU
When an Order Cheque is endorsed it becomes a
- A) Confirmed cheque
- B) Bearer cheque
- C) Cleared cheque
- D) Dishonoured cheque
Correct Answer: B) Bearer cheque
Explanation
The correct answer is Option B: Bearer cheque. When an order cheque is endorsed, it becomes a bearer cheque. A bearer cheque is a cheque that can be transferred to another person simply by handing it over. The person who holds the bearer cheque can then deposit it or cash it themselves.It is important to note that bearer cheques can be risky because if they are lost or stolen, anyone who finds or steals the cheque can use it. That is why it is always important to keep cheques safe and secure.
To learn more about cheques and their different types, you can refer to your Commerce textbook or ask your teacher for more information
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