Asked by Shavon Bashir on Apr 29, 2024
Verified
Which statement is true about cashier's checks, teller's checks, and certified checks?
A) Cashier's, teller's, and certified checks are often used in payment of withdrawal orders.
B) The drawer and the drawee for cashier's, teller's, and certified checks are the same bank.
C) Cashier's, teller's, and certified checks are considered as cash in the business world.
D) Cashier's, teller's, and certified checks are less likely to be denied by a bank.
E) The drawer for cashier's, teller's, and certified checks is the payor bank.
Cashier's Checks
A check issued by a bank, drawn on its own funds rather than that of a personal account, and signed by a cashier or teller.
Drawer
In contractual terms, the party that writes or drafts a cheque or bill of exchange.
Payor Bank
A bank that is responsible for paying a check or draft drawn upon it by its customer.
- Detail the properties, functions, and legal considerations of traveler's checks and cashier's checks.
Verified Answer
ZK
Zybrea KnightMay 06, 2024
Final Answer :
D
Explanation :
Cashier's, teller's, and certified checks are seen as more secure and reliable forms of payment compared to personal checks because they are backed by the bank's funds. This makes them less likely to be denied by a bank for payment, as the bank has already earmarked or allocated the funds for these checks.
Learning Objectives
- Detail the properties, functions, and legal considerations of traveler's checks and cashier's checks.