Asked by Janae Hernandez on May 06, 2024
Verified
A _____ endorsement states,"PAY TO THE ORDER OF (name of bank where the check is to be deposited) ."
A) restrictive
B) blank
C) formal
D) protective
Restrictive Endorsement
A limitation placed on a check specifying the conditions under which it can be paid or transferred, often used for security purposes.
Pay To The Order
A phrase written on a financial instrument such as a check, indicating the person or entity to which the money is directed.
Bank
A financial institution licensed to receive deposits and make loans, and may offer various other financial services.
- Familiarize with the endorsement types and their implications on check processing.
Verified Answer
CT
Ceanna TraverMay 09, 2024
Final Answer :
A
Explanation :
A restrictive endorsement specifies conditions regarding the use or payment of the check, such as "for deposit only" or specifying the account or person to which it can be deposited, making it a safer option for check endorsement.
Learning Objectives
- Familiarize with the endorsement types and their implications on check processing.