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      Question

      Which is a key risk associated with bearer cheques

      compared to order cheques?
      A Time-consuming clearance Correct Answer Incorrect Answer
      B Higher processing fees Correct Answer Incorrect Answer
      C Misuse if lost or stolen, as anyone can encash it Correct Answer Incorrect Answer
      D Cannot be endorsed to another party Correct Answer Incorrect Answer
      E Not valid for more than 7 days Correct Answer Incorrect Answer

      Solution

      Bearer cheques are risky as they are payable to whoever presents the cheque β€” no identity required.

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