Which of the Following Statements Is TRUE with Respect to Certification

question 31

Multiple Choice

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

• A)A certified cheque is usually certified at the request of either the payee or the drawee.
• B)The process of certification is expressly based on a detailed set of provisions in the Bills of Exchange Act.
• C)Certification allows the payee to receive payment even if the relevant account is overdrawn.
• D)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.
• E)The decision to countermand a cheque must be made by the payee or the drawee, but not by the drawer.

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Definitions:

Structural Abnormalities

Deviations from the normal configuration of the body or any of its parts, often resulting from genetic or environmental factors.

Schizophrenic Disorders

A group of severe mental health conditions characterized by disruptions in thought processes, perceptions, emotional responsiveness, and social interactions.

Brain Tissue

The collection of neurons and supportive cells in the brain that are responsible for neural processing and function.

Personality Disorders

A category of psychological disorders identified by persistent unhealthy patterns of thought, action, and personal feeling, shown in various situations and significantly differing from the norms of the person's cultural background.