Selecting a Middleman Is Usually as Simple as Asking for a Recommendation

question 22

True/False

Selecting a middleman is usually as simple as asking for a recommendation from a company's local manager.

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Definitions:

Checks

Financial instruments that order a bank to pay a specific amount of money from the writer’s account to the person or entity in whose name the check has been issued.

Depositary Bank

The first bank that receives a check for payment.

Collecting Bank

Any bank, with the exception of the payor bank, that handles a check during the check collection process.

Check Collection Process

The procedure by which banks handle the transfer and clearing of checks from the payee's bank to the issuer's bank, ensuring payment.