Asked by Paola Davis on Jul 21, 2024
Verified
A drawer's written stop-payment order is valid for six months and the drawer can extent it for an additional ________ by giving the bank instructions in writing to continue the order.
A) six months
B) 30 days
C) 90 days
D) month
Stop-payment Order
An order given to a bank by an account holder not to honor a specific check or payment, often used in cases of lost checks or disputes over payment.
Six Months
A time frame consisting of approximately 180 days or half a year.
Drawer
The person or entity that writes or issues a check, making an order to a bank to pay a specified amount of money to the party named or to the bearer.
- Comprehend the criteria and processes involved in initiating a stop-payment instruction on a check.
Verified Answer
MM
Michael MaherJul 27, 2024
Final Answer :
A
Explanation :
A written stop-payment order is valid for six months and the customer can extend it for an additional six months by giving the bank instructions in writing to continue the order.
Learning Objectives
- Comprehend the criteria and processes involved in initiating a stop-payment instruction on a check.