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Emily Gave Pierre a Cheque for $5000 as Payment for the Car

Question 39

Multiple Choice

Emily gave Pierre a cheque for $5000 as payment for the car he sold her.Pierre owed Henry $5000,and he provided Emily's cheque to Henry to satisfy the debt.Henry couldn't make it to the bank,so he gave it Nigel to deposit for him.When Nigel attended Henry's bank to deposit the cheque,which of the following was most likely the result?


A) The Bills of Exchange Act will require the bank to hold the cheque for 10 days.
B) Provided all endorsements were in order, the bank accepted the cheque for deposit.
C) The bank will refuse the cheque as acceptance will effectively extend credit.
D) The bank was required by FINTRAC to verify the validity of the transaction.

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