The illegal practice of writing cheques against money that has not yet arrived at the bank on which the cheque has been drawn is called
A) insider trading.
B) whistle blowing.
C) managing the monetary float.
D) kickbacks.
E) cheque kiting.

Question

Quizplus · Accepted Answer

The practice described in the question is referred to as "cheque kiting." Choice A, insider trading, is unrelated to the concept of kiting. Choice B, whistle blowing, is also unrelated. Choice C, managing the monetary float, is a legitimate financial strategy and not necessarily illegal. Choice D, kickbacks, refers to the practice of giving or receiving bribes or illegal payments in exchange for favors or business deals, which is also unrelated to cheque kiting.

The Illegal Practice of Writing Cheques Against Money That Has