State Bank agrees to accept a check by setting aside sufficient funds to cover the amount. This check is considered
A) cashed.
B) certified.
C) deposited.
D) a provisional credit.

Question

State Bank agrees to accept a check by setting aside sufficient funds to cover the amount. This check is considered​
A) ​cashed.
B) ​certified.
C) ​deposited.
D) ​a provisional credit.

Quizplus · Accepted Answer

By setting aside sufficient funds to cover the amount, the State Bank is certifying that the check is valid and will be honored for payment. Once certified, the check cannot be returned due to insufficient funds, which is not the case with a deposited check or a provisional credit. The check is not considered cashed until the funds have been transferred from the account to the payee.

State Bank Agrees to Accept a Check by Setting Aside