3.3 cheques

Question 1

Cheque

Answer 1

-Instructions to provider to pay specified amount to a specified person/organisation
-pre printed cheque books given to current account holders

Question 2

What is on a cheque

Answer 2

• Name of who it’s going to
• amount in words + figures
• Date
• signature

Question 3

Advantages of cheques

Answer 3

• secure
• easy to carry and use

Question 4

Disadvantages of cheques

Answer 4

• can’t be certain as money isn’t recurves immediately
• can’t do cheque is holder doesn’t have the money in their acc (unpaid)
  ( cheque bouncing )

Question 5

Until 30 June 2011 ( cheques )

Answer 5

• cheque guarantee card that ensured cheques up to specific amounts of
  
  • £50
  • £100
  • £250
    Would be paid even if not enough in account

Question 6

Why some refuse cheques

Answer 6

• risk of return ( unpaid )
• cost of processing cheques> processing payment transactions

Question 7

Decline in the use of cheques 📉

Answer 7

• alt ways to pay
• falling every year since 1990

Question 8

Attempt to phase out cheques by 2018 (2009)

Answer 8

Argued against
- good for small businesses
- older people
- 2011decided will remain