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Q.

[[1]] is a paper that contains the account holder’s name, and account number which instructs banks to pay money.


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Detailed Solution

A cheque is a paper that contains the account holder’s name and account number, which instructs banks to pay money.
The banks can only issue cheques to those who have opened a bank account there for transactions. It is a highly liquid form of cash with the same value as money. These are the demand deposits that can be withdrawn at any time from anywhere as and when required by the depositor. Banks also pay some interest on them. The banks further use it to lend these deposits to people who need credit for various purposes.
 
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