Asked by Jeannie Howell on Jul 20, 2024
Verified
Nelda writes a check to Jorge. When is this check actually payable?
A) Within twenty-four hours after it is issued.
B) As soon as a bank clears it but no longer than 3 business days.
C) Two days after it is issued.
D) As soon as it is issued.
E) No later than 48 hours after it is issued.
Payable
Refers to an amount of money that is owed by a person, company, or organization to another entity and is due to be paid.
Check
A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or to a specified person or entity.
Issued
Released or distributed officially by an authority, such as documents, currency, or rulings.
- Recognize various kinds of negotiable instruments and delineate their unique features.
Verified Answer
EC
Elizabeth Calleja GarciaJul 26, 2024
Final Answer :
D
Explanation :
Checks are considered payable on demand, which means they are payable as soon as they are issued. There is no waiting period before a check becomes payable.
Learning Objectives
- Recognize various kinds of negotiable instruments and delineate their unique features.