Which of the following is true of the relationship between the drawee bank and its customer?

Question

Quizplus · Accepted Answer

When a customer opens a checking account, the drawee bank becomes the customer's debtor, as it holds the customer's funds and owes them to the customer. However, when the customer writes a check to someone else, the drawee bank becomes an agent for the customer in collecting funds from the drawee of the check. Therefore, C is the correct option. A is incorrect because the customer does not owe the drawee bank anything at the time of opening the account. B is incorrect because the drawee bank is not an insurer. D is partially correct but not the best choice since it only applies in cases where the customer overdrafts their account.

Which of the Following Is True of the Relationship Between