i. Bearer Cheque:
A bearer cheque is a type of cheque that is payable to anyone in possession of it. The bank does not require verification of the payee’s identity, and the person holding the cheque can cash it immediately. This makes bearer cheques convenient but also riskier, as they can be easily transferred and cashed by anyone who obtains it. (4 Marks)

ii. Order Cheque:
An order cheque is payable only to a specific person or entity whose name is mentioned on the cheque. In contrast to a bearer cheque, the bank will verify the identity of the named payee before making payment. If the cheque is to be transferred, the payee must endorse it by signing their name on the back of the cheque, making it more secure than a bearer cheque. (4 Marks)