BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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request that the bank not honor a specific check
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personal check the bank guarantees to be good
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check written by the bank on its own funds
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check that cleared your account.
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Detailed explanation-1: -What Is a Canceled Check? A canceled check is a check that has been paid or cleared by the bank it was drawn on after it has been deposited or cashed. The check is “canceled” after it’s been used or paid so that the check cannot be used again.
Detailed explanation-2: -Checks that have been paid by the bank they are drawn on. After the money is deducted from your checking account, the bank will cancel the check, so it can no longer be used. You may be asked to provide copies of canceled checks to prove payments for divorce settlement, child support, or other required expenses.
Detailed explanation-3: -Cleared checks therefore refers to checks which have been successfully processed and the funds have made their way from the drawer’s account to the depositing account. The time it takes for a check to clear will vary but is usually less than five working days.
Detailed explanation-4: -Cancelled cheques are one cheque you can use to open a bank account or apply for a loan. Cancelled cheques are vital documents banks and other financial institutions need to verify the customer’s banking information.