Question

Match the term with the correct definition.

a. Cashier’s check
b. Check
c. Certified check
d. Traveler’s check

1. a draft drawn by a drawer ordering the drawee bank or financial institution to pay a certain amount of money to the holder on demand
2. a draft drawn by a bank on itself
3. a draft that is payable on demand, drawn on or payable through a bank, and specially designated
4. a draft that had been accepted by the bank on which it is drawn, promising to pay the check when it is presented

Answer 1

Answer:

Matched as below

Explanation:

a. Cashier’s check: A draft drawn by a bank on itself

b. Check:  A draft drawn by a drawer ordering the drawee bank or financial institution to pay a certain amount of money to the holder on demand

c. Certified check:  A draft that is payable on demand, drawn on or payable through a bank, and specially designated

d. Traveler’s check: A draft that had been accepted by the bank on which it is drawn, promising to pay the check when it is presented