Asked by Gustavo Perez-Ramirez on May 20, 2024
Verified
Which of the following banks is the bank that is responsible to either respond to the check by dishonoring it or becoming liable for the face amount of a check.
A) Depository bank
B) Repository bank
C) Payor bank
D) Intermediate bank
E) Payee bank
Payor Bank
A bank that is responsible for paying a check or draft on behalf of a customer, typically the bank where the check writer has an account.
Depository Bank
A financial institution that holds and manages securities (stocks, bonds, etc.) for its clients and may also offer other banking services.
- Learn the workings and methods of various check types utilized in the banking industry.
- Understand the functions and duties of financial institutions within the check clearing house mechanism.
Verified Answer
SA
Shannon AndrewsMay 25, 2024
Final Answer :
C
Explanation :
The Payor bank is responsible for either responding to a check by dishonoring it or becoming liable for the face amount of the check. This is the bank on which the check is drawn and holds the account from which the funds are to be paid.
Learning Objectives
- Learn the workings and methods of various check types utilized in the banking industry.
- Understand the functions and duties of financial institutions within the check clearing house mechanism.