Asked by gloria goodman on May 12, 2024
Verified
A cashier's check is a check for which
A) needs a special endorsement.
B) both the drawer and the drawee are the same bank.
C) two parties must agree to be bound.
D) there are two separate banks.
E) where there are three responsible parties.
Depositary Bank
A financial institution that receives a deposit, especially one authorized to hold funds or securities for others.
Payor Bank
The bank responsible for disbursing the funds indicated on a check.
Drawer
In the context of banking and checks, the individual or entity that writes and signs a check, directing a bank to pay the stated amount.
- Understand the dynamics and mechanisms of different types of checks within the banking system.
Verified Answer
ZK
Zybrea KnightMay 16, 2024
Final Answer :
B
Explanation :
A cashier's check is a type of check where the bank is both the drawer and the drawee, meaning the bank is responsible for paying the amount specified on the check.
Learning Objectives
- Understand the dynamics and mechanisms of different types of checks within the banking system.