What is a Check

What is the primary function of a check?

• To serve as a form of identification.

• To instruct a bank to pay money from the writer to the bearer or payee.

• To act as a credit card for purchases.

• To record daily transactions for budgeting.

Who is referred to as the 'Payor' or 'Drawer' of a check?

• The person or entity receiving the money.

• The bank that issues the check.

• The person or entity writing the check.

• The government agency that regulates checks.

What is a safety advantage of using a check compared to cash for large amounts?

• Checks are universally accepted by all vendors.

• Checks can be easily replaced if lost or stolen without any financial risk.

• A lost or stolen check cannot be legally cashed by anyone other than the intended payee.

• Checks offer better interest rates than cash deposits.

Where would you typically find the name and contact information of the person who wrote the check?

• In the top left-hand corner of the check.

• On the memo line at the bottom left.

• In the box next to the dollar amount.

• In the lower right-hand corner where the signature is.