Asked by Mikaela Forcum on Jun 21, 2024
Verified
Which of the following is a check for which both the drawer and the drawee are the same bank,and the payee of the check is a specific person?
A) Certified
B) Unqualified
C) Qualified
D) Cashier's
E) Third-party
Cashier's Check
A check issued by a bank, drawn on its own funds rather than that of a personal account, ensuring the availability of funds.
Drawer
The party that writes or creates a bill of exchange, such as a check, directing a drawee to pay a specified sum to a payee.
Drawee
The party, typically a bank, upon whom a check or draft is drawn and is expected to pay the stated amount.
- Comprehend the diverse categories of negotiable instruments and their unique properties, including checks, cashier's checks, certified checks, and drafts.
Verified Answer
MG
Melissa GoldenJun 24, 2024
Final Answer :
D
Explanation :
Uniform Commercial Code Section 3-104(g)defines a cashier's check as a check for which both the drawer and the drawee are the same bank.The payee of the check is a specific person.In other words,the bank is drawing on itself and thus assumes the responsibility for paying the check to that specific person.
Learning Objectives
- Comprehend the diverse categories of negotiable instruments and their unique properties, including checks, cashier's checks, certified checks, and drafts.