ELI5: Explain Like I'm 5

Blank cheque

A blank cheque is a piece of paper that has no money written on it, but it has the owner's signature. Think of it as a drawing of a piggy bank, but with no coins inside.

Now, grown-ups use cheques to pay for things they buy or to give money to someone else. They write the amount of money they want to give on the cheque, sign it and hand it over to the other person.

But a blank cheque is different. Because it has no money written on it, the person who has it can actually put any amount they want on it, even if the owner of the cheque did not agree to that amount! Imagine if you asked for one piece of candy and got a whole bag instead because someone else filled up your piggy bank!

That's why people usually don't give blank cheques to other people, especially if they don't trust them to write the right amount. It's like giving someone the power to take as much money as they want from you!

So, always be careful with blank cheques, and only give them to people you trust and who you have agreed with on how much money they are allowed to put on the cheque.
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