Which of the Following Statements Is TRUE with Respect to Certification

question 23

Multiple Choice

Which of the following statements is TRUE with respect to certification of cheques?

• A) The process of certification is expressly based on a detailed set of provisions in the Bills of Exchange Act.
• B) The decision to countermand a cheque must be made by the payee or the drawee, but not by the drawer.
• C) A certified cheque is usually certified at the request of either the payee or the drawee.
• D) Certification allows the payee to receive payment even if the relevant account is overdrawn.
• E) After certifying a cheque, a bank normally transfers funds into a countermand account and then uses those funds to honour the cheque when it is presented for payment.

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Definitions:

Reliance

Dependence on or trust in someone or something.

Leader

A person who influences and guides others within a group or organization towards achieving goals and objectives.

Nominal Group Technique

A structured method for group brainstorming that encourages contributions from everyone.

Compromise

Compromise is a conflict resolution strategy involving mutual concessions where all parties involved adjust their demands to reach an agreeable solution.