Asked by Patrick Pedersen on May 16, 2024
Verified
A check is referred to as a(n) ________ when the depositary bank is the same bank as the payor bank.
A) "in-place item"
B) "combined item"
C) "continued item"
D) "on-us item"
E) "uniform item"
Depositary Bank
A financial institution that holds and manages the securities of a depositor, facilitating the exchange of securities and related transactions.
Payor Bank
A bank that is responsible for paying a check or draft on behalf of its client.
- Absorb the fundamentals and procedures of different checks operation in the banking environment.
Verified Answer
DM
Dionna ManningMay 16, 2024
Final Answer :
D
Explanation :
An "on-us item" refers to a check where the depositary bank (where the check is deposited) is the same as the payor bank (the bank on which the check is drawn). This means the check can be processed internally by the same bank.
Learning Objectives
- Absorb the fundamentals and procedures of different checks operation in the banking environment.