Which of the following is true of the drawer-drawee relationship?
A)The drawer becomes the creditor when the drawee bank pays more than the drawer has on deposit.
B)The drawer becomes a debtor and the drawee bank becomes the creditor at the time of opening a checking account.
C)The drawer becomes the insured and the drawee bank becomes the insurer at the time of opening a checking account.
D)The drawer becomes the creditor and the drawee bank becomes the debtor at the time of opening an account.

Question

Which of the following is true of the drawer-drawee relationship?
A)The drawer becomes the creditor when the drawee bank pays more than the drawer has on deposit.
B)The drawer becomes a debtor and the drawee bank becomes the creditor at the time of opening a checking account.
C)The drawer becomes the insured and the drawee bank becomes the insurer at the time of opening a checking account.
D)The drawer becomes the creditor and the drawee bank becomes the debtor at the time of opening an account.

Quizplus · Accepted Answer

When a person deposits money in an account at the bank,the law no longer considers him the owner of the money.Instead,he is a creditor of the bank to the extent of his deposits,and the bank becomes his debtor.

Which of the Following Is True of the Drawer-Drawee Relationship