Concept:A cheque refused by the bank because the account has insufficient funds is known as a dishonored cheque.
Explanation:When a cheque is presented for payment, the bank checks the drawer’s account balance.
If the balance is less than the cheque amount, the bank refuses to pay.
This unpaid cheque is returned to the presenter and is called a dishonored cheque.
A bearer cheque can be paid to anyone who presents it.
A crossed cheque can only be paid through a bank account.
A stale cheque has passed its validity period.
None of these describe refusal due to insufficient funds.
Answer:C. dishonored cheque