When a Cheque Is Cleared Against a Bank, It Will

question 130

Multiple Choice

When a cheque is cleared against a bank, it will lose:

• A)cash and securities.
• B)demand deposits and cash reserves.
• C)reserves and stock shares.
• D)loans and demand deposits.

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Definitions:

Sale on Approval

A transaction agreement where the buyer has the right to return the item within a specified period if it does not meet their satisfaction.

Title

The formal right of ownership of property, which may include real estate or vehicles, among others.

Possession

The act of having physical control or ownership of an object or property.

Risk of Loss

A legal term that determines who bears the cost of damage to goods during a transaction or transportation before the purchaser receives them.