A cheque which the bank refused to pay because the drawer had insufficient funds in his account is?
-
a bounced cheque
- a bearer cheque
- a crossed cheque
- an order cheque
The correct answer is: A
Explanation
A bounced cheque is a cheque which is returned by a bank because the account owner does not have sufficient funds on deposit. When someone writes a cheque to someone else or to a company, that entity in turn deposits the cheque into the bank.