Asked by Amarna Windross on May 12, 2024
Verified
A check that a drawee bank guarantees will be paid to the holder is a:
A) bank draft.
B) traveler's check.
C) certified check.
D) treasurer's check.
Certified Check
A check verified by a bank, guaranteeing that the writer of the check has enough funds available for the transaction.
- Comprehend the responsibilities and duties of entities participating in certified checks and drafts.
Verified Answer
DF
Daisy FandinoMay 13, 2024
Final Answer :
C
Explanation :
A certified check is a check that a bank guarantees will be paid to the holder, as the bank sets aside the funds from the drawer's account to ensure the check can be cashed. A bank draft is a type of check where the bank itself is the drawer, while a traveler's check is like a prepaid, fixed-denomination check used for travel expenses. A treasurer's check is a check issued by a government entity or organization. Therefore, only a certified check fits the description provided.
Learning Objectives
- Comprehend the responsibilities and duties of entities participating in certified checks and drafts.