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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