Asked by Elizabeth Carney on May 22, 2024
Verified
If Sam writes a check drawn on his account at First Bank to State University to pay his tuition:
A) Sam is the drawer.
B) the university is the drawee.
C) the bank is the payee.
D) Sam is the maker.
Drawer
In the context of banking, the person who writes or issues a check or draft instructing the drawee to pay someone else.
Drawee
The party upon whom a cheque or draft is drawn, and who is expected to pay the amount specified to the payee.
Payee
The individual or entity to whom a cheque or electronic payment is made payable.
- Gain insight into the jobs and responsibilities assigned to participants in negotiable instruments, namely the drawer, drawee, payee, and holder in due course.
Verified Answer
PR
PurpleHaze RozayMay 25, 2024
Final Answer :
A
Explanation :
Sam, who writes the check, is indeed the drawer, meaning he is the person who has written and is giving the order to pay a specific amount of money.
Learning Objectives
- Gain insight into the jobs and responsibilities assigned to participants in negotiable instruments, namely the drawer, drawee, payee, and holder in due course.
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