Which of the following is a characteristic of a bearer cheque
Answer Details
A characteristic of a bearer cheque is that it is made payable to whoever presents it.
A bearer cheque is a type of negotiable instrument that is payable to the bearer or holder of the cheque. This means that whoever possesses the cheque can cash it or deposit it into their own account, regardless of whether they are the payee named on the cheque or not. In other words, the payee is not specified on the cheque, and anyone who presents the cheque can receive payment.
Bearer cheques are usually made without transverse lines, which are lines drawn across the cheque to indicate that the cheque can only be deposited into the account of the payee named on the cheque. Without transverse lines, bearer cheques can be easily transferred from person to person, making them a convenient form of payment.
Overall, bearer cheques provide a flexible and convenient way to make payments, but they can also be risky because they can be easily stolen or lost. Therefore, it is important to handle bearer cheques with care and ensure that they are only given to trusted parties.