Fiora has a checking account at Big Bank.She writes a check on her account to Lisa,who submits the check to Food Stuff to buy groceries.Food Stuff obtains payment on the check from Big Bank.Which of the following is true?

Question

Quizplus · Accepted Answer

In a check transaction, the person who writes the check is the drawer, the person who receives the check is the payee, the bank on which the check is drawn is the drawee, the person who endorses the check to someone else is the indorser, and the party who receives the check after it's been endorsed is the indorsee. In this scenario, Fiora is the drawer who writes the check, Lisa is the payee who receives the check, Food Stuff is the indorsee who obtains payment on the check, and Big Bank is the drawee who pays out the funds. Therefore, the correct option is A.

Fiora Has a Checking Account at Big Bank