Multiple choice

When a cheque is returned by the bank marked 'Refer to Drawer', this means the drawer

  1. has instructed the bank not to pay the cheque

  2. whishes to be contacted before the cheque is cashed

  3. has improperly completed the cheque and must correct it before payment

  4. had insufficient funds in his account to pay the cheque
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

'Refer to Drawer' is standard banking terminology indicating that the cheque cannot be honored due to insufficient funds in the drawer's account. It instructs the payee to contact the person who wrote the cheque to arrange alternative payment.

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