Payment to a named payee by a bank with a check drawn on itself is a:
A) cashier's check.
B) trade acceptance.
C) sight draft.
D) time draft.

Question

Quizplus · Accepted Answer

A cashier's check is a check drawn on a bank's own funds, signed by a cashier or teller, and made payable to a specific person or entity. It is considered a more secure form of payment compared to a personal check because the bank guarantees the funds. A trade acceptance is a type of commercial draft used in international trade, while a sight draft and time draft are both types of negotiable instruments that have specific payment terms and conditions.

Payment to a Named Payee by a Bank with a Check