A(n)________ check is a two-party check for which (1)the issuing bank serves as both the drawer and the drawee and (2)the holder serves as payee.

Question

Quizplus · Accepted Answer

This scenario describes a cashier's check, which is issued by a bank and drawn from the bank's own funds. The bank serves as both the drawer and the drawee, and the holder is the payee. A certified check is a personal check that has been guaranteed by the issuing bank, but the holder is not necessarily the payee. An accepted check is a personal check that has been accepted by the bank and marked with the word "accepted," but again, the holder is not necessarily the payee. A dishonored check is a check that the bank has refused to pay, and a ratified check is not a commonly used term in banking.

A(n)________ Check Is a Two-Party Check for Which (1)the Issuing