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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 — no identity required.

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