Question

In a/an __________ type of cheque the amount is credited to the Payee's account in the bank directly.

• A. Bearer
• B. Order
• C. Crossed
• D. Account payee

Answer 1

The correct option is D Account payee

An account payee cheque is a highly secured type of cheque as the amount can only be deposited in the account of the payee (the person to whom the payment will be made) . Payee cannot endorse this cheque to anyone. This means if the cheque which is in favor of payee bears A/c payee words, payment can be collected in payee's account only.