Question
Mention the chracteristics of cheque payments.
Solution
The chracteristics of cheque payments:
(i)For payment through cheque, the payer who has an account with the bank, makes out a cheque for a specific amount.
(ii)A cheque is a paper instructing the bank to pay a specific amount from the person’s account to the person in whose name the cheque has been issued.
(iii)Cheque payments share the essential features of money.
(iv)The facility of cheques against demand deposits makes it possible to directly settle payments without the use of cash.
(v)Since cheque payments are accepted widely as a means of payment, along with currency, they constitute money in the modern economy.
(i)For payment through cheque, the payer who has an account with the bank, makes out a cheque for a specific amount.
(ii)A cheque is a paper instructing the bank to pay a specific amount from the person’s account to the person in whose name the cheque has been issued.
(iii)Cheque payments share the essential features of money.
(iv)The facility of cheques against demand deposits makes it possible to directly settle payments without the use of cash.
(v)Since cheque payments are accepted widely as a means of payment, along with currency, they constitute money in the modern economy.
