Elmore pays First National Bank $1,000 plus a service fee to draw a check on itself made payable to Go Delivery Service. This is
A) a cashier's check.
B) an overdraft.
C) a stale check.
D) a stop-payment order.

Question

Elmore pays First National Bank $1,000 plus a service fee to draw a check on itself made payable to Go Delivery Service. This is​
A) ​a cashier's check.
B) ​an overdraft.
C) ​a stale check.
D) ​a stop-payment order.

Quizplus · Accepted Answer

A cashier's check is a check drawn on the bank's own funds and signed by a cashier or bank teller. In this scenario, Elmore is paying the bank to draw a check on itself, which matches the definition of a cashier's check.

Elmore Pays First National Bank $1,000 Plus a Service Fee