Sylvia draws a check on ABC Bank payable "to the order of Ann Smith." Ann indorses it and deposits it in her account at First Bank. First Bank is a:

A) drawee bank.
B) payee bank.
C) depositary bank.
D) payor bank.

Depositary Bank

A financial institution that holds and manages securities deposits and facilitates trading of these financial assets.

Drawee Bank

Drawee bank refers to the bank upon which a check or draft is drawn, responsible for paying the specified amount of money to the entity presenting the check for payment.

Payor Bank

A bank that is responsible for paying the check or draft drawn on the funds deposited in an account.