CIBNBanking LawNegotiable Instruments

Crossed cheques can be paid only:

AIn cash
BInto a bank accountCORRECT
CBy messenger
DAnywhere
AI
Toasta AI Explanation
Why the answer is B, and why the others tempt you.
**The reasoning** A crossed cheque has two parallel lines drawn across its top left corner (sometimes with "& Co." or "A/C Payee Only" written between them). This crossing is a **security instruction** that restricts how the cheque can be cashed. When a cheque is crossed, the bank **must** deposit the money into the payee's bank account — it cannot pay out cash over the counter. This creates a traceable record of who received the money, reducing fraud and theft. Think of it as forcing the payment through the banking system for accountability. **Why the wrong options tempt you** - **A) In cash** — This is exactly what crossing *prevents*. An uncrossed (open) cheque can be cashed, but not a crossed one. - **C) By messenger** — A messenger can *deliver* the cheque, but that doesn't determine *how* it's paid. Still goes into an account. - **D) Anywhere** — Sounds flexible, but crossing actually *restricts* where payment happens — only through bank accounts. **Quick takeaway** Crossed cheque = forced bank deposit = paper trail for security. The lines literally block cash payments!
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