When a Check Is Issued,the Party Being Paid the Cash

question 97

Multiple Choice

When a check is issued,the party being paid the cash is referred to as the ________.

• A) payee
• B) maker
• C) bank signatory
• D) depositor

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Definitions:

Drawer

In the context of financial instruments, the entity that writes or issues a check or draft.

Dishonored

A term used when a financial instrument like a check or promissory note is not accepted or paid on presentation.

Personal Defenses

Legal defenses that can be used to avoid enforcement of a contract or negotiation due to personal circumstances, such as minority, incapacity, or duress.

Illegality

The quality or condition of being contrary to law or forbidden by law.