Asked by Kiana Despabiladero on Apr 29, 2024
Verified
A ________ is the party that give the order and the ________ is the party that must obey that order.
A) drawer, drawee
B) drawee, drawer
C) payee, payer
D) payer, payee
E) draftee, drafter
Drawer
In banking and finance, the person who writes or issues a check or draft instructing the bank to pay a specified amount of money to a designated party.
Drawee
The party in a financial transaction who is directed to pay a certain sum of money as per the payer's instructions.
- Comprehend the roles of draft, drawer, drawee, and payee in the framework of negotiable instruments.
Verified Answer
AK
Anastacia KuzminaMay 05, 2024
Final Answer :
A
Explanation :
The drawer is the party that creates and signs a draft (such as a check), directing the drawee (the party, often a bank, required to pay the amount) to pay the money to a third party (the payee).
Learning Objectives
- Comprehend the roles of draft, drawer, drawee, and payee in the framework of negotiable instruments.