Which of the Following Statements Is TRUE with Respect to Certification

question 33

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:

Key Success Factors

Critical elements or activities required for an organization to achieve its business objectives and be successful in its industry.

Local Responsiveness

The ability of an organization to understand local conditions and adapt its products and practices to meet the needs of a specific market.

Low Cost Reductions

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