Parties in a Check and Erasures
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Questions and Answers

Who is the drawer in a check?

  • The one who is named on the check
  • The one writing the check and whose signature appears on it (correct)
  • The one entitled to payment from the drawee
  • The bank where the account is maintained

    • What does the payee refer to in a check?

  • The bearer of the check
  • The one writing the check
  • The bank in which the account is maintained
  • The one named on the check and entitled to payment (correct)

    • What is the drawee in a check?

  • The bank in which the account is maintained (correct)
  • The one writing the check
  • The bank where the drawer's account is maintained
  • The bank that pays the check

    • What happens if there are erasures in a check according to the text?

    <p>The erasures should be signed by the drawer</p> Signup and view all the answers

    What does a bank statement typically show?

    <p>Details of checks paid by the bank</p> Signup and view all the answers

    What is considered a liability of the bank according to the text?

    <p>Individual/entity's bank account</p> Signup and view all the answers

    What is a savings account primarily intended for?

    <p>Encouraging savings</p> Signup and view all the answers

    Which of the following typically evidences a savings account?

    <p>Passbook</p> Signup and view all the answers

    What do bank statements show to depositors?

    <p>Deposits and withdrawals made by the depositor</p> Signup and view all the answers

    Which of the following is NOT a common feature of a savings account?

    <p>High credit limits</p> Signup and view all the answers

    What is the primary purpose of a passbook related to a savings account?

    <p>Recording deposits and withdrawals</p> Signup and view all the answers

    Which document is used to track personal deposits and withdrawals in a bank account?

    <p>Passbook</p> Signup and view all the answers

    What type of account allows withdrawals through designated machines?

    <p>ATM account</p> Signup and view all the answers

    Which document(s) are usually required to open a bank account?

    <p>Valid identification card and filled forms</p> Signup and view all the answers

    What does a deposit slip do at a bank or credit union?

    <p>Identify the depositor and provide instructions to the financial institution</p> Signup and view all the answers

    What is NOT a benefit of having an ATM account?

    <p>Ability to deposit checks remotely</p> Signup and view all the answers

    What is the purpose of listing checks individually on a deposit slip?

    <p>To help the bank identify each check and its amount separately</p> Signup and view all the answers

    Why is it important to have a paper trail for every transaction?

    <p>To provide a record of all financial activities for future reference</p> Signup and view all the answers

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