Question

Match each term to the correct definition.
1. A check that is payable on demand, drawn on or payable through a bank, and designated as a traveler's check.
2. A check that has been accepted by the bank on which it is drawn. Essentially, the bank, by certifying (accepting) the check, promises to pay the check at the time the check is presented.
3. check drawn by the bank on itself.
4. 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.
a. Certified check
b. Cashier's check
c. Check A
d. Traveler's check

Answer 1

Answer:

a. 2

b. 3

c. 4

d. 1

Explanation:

Certified check is the kind of check which is a personal check guaranteed through the bank of the check writer. In short, the bank will verify or tally the signature of account holder and has enough or adequate amount of money.

Cashier check is the kind of check which is guaranteed through a bank and drawn on the bank own funds as well as signed through cashier.

Check A, it is the document which orders the bank to pay a particular amount of money or fund from the person account to the person whose name is mentioned on the check.

Traveler check is the medium of exchange and it is a paper document used in place of the hard currency, which is payable on the demand of the person.