In a Check Transaction,the Party Who Has a Checking Account

question 157

Multiple Choice

In a check transaction,the party who has a checking account and writes the check is the ________,the financial institution upon which the check is written is the ________,and the party to whom the check is written is the ________.

• A) drawee; drawer; payee
• B) drawer; drawee; payee,
• C) payee; drawee; drawer
• D) payee; drawer; drawee
• E) drawer; payee; drawee

---

Definitions:

Upper Cash Limit

The maximum cash balance a company sets to hold on hand, beyond which excess funds are usually invested in short-term securities.

Lockbox Services

Banking services that process payments for companies by collecting and depositing checks into their accounts.

NPV

Net Present Value is a financial measure that computes the variance between the present value of cash inflows and outflows within a specific timeframe.

T-bills Yield

The return on investment for U.S. Treasury bills, being a measure of the interest income earned from holding these government securities.