Choose the given statement that is true/false.

A cheque is an instrument that instructs a bank to withdraw money.

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Detailed Solution

The above statement is true.
A cheque is a piece of paper or documents the bank issue to the depositors. The depositor can use it to instruct banks to withdraw a certain sum of money. The depositor can also use it to settle payments and avail transactions by issuing a cheque in the name of the person to whom the amount is to be transferred. Long-distance payments can be made without going to a different place or country. Thus, cheques have evolved and helped settle transactions for many years quickly. Cheques are also known as negotiable instruments. It makes transferring money from one account to another hassle-free and very convenient without going to the bank.

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