What type of function is a collection of cheques in a bank?

secondary

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primary

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compulsory

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mandatory

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Solution

The correct option is A secondary
Secondary function is a collection of cheques in a bank.
The bank collects the money of the cheques through clearing section of its customers. The bank also collects money of the bills of exchange.

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Similar questions

When cheques received from a customer are deposited into the bank for collection, which of the following is correct?

Prepare a Bank Reconciliation Statement on 31 March 2004 for the following when debit balance of pass book is Rs. 10,000:

(1) Cheque amounting to Rs.8,000 drawn on 25th of March of which cheques of Rs.5,000 cashed in April 2004.

(2) Cheques paid into Bank for collection to Rs.5,000 but cheques of Rs.2,200 could only be collected in March 2004..

(3) Bank charges Rs.25 and dividend of Rs.350 on investment collected by bank could not be shown in cash book.

(4) A cheque of Rs.600 debited in cash book omitted to be banked.

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