Fact Pattern 19-2 Tom Draws a Check, on His Account in State Bank

question 38

Multiple Choice

Fact Pattern 19-2
Tom draws a check, on his account in State Bank in New York, payable to Digital Media, Inc., in San Francisco. Digital deposits the check in its account at First National Bank.
-Refer to Fact Pattern 19-2. Digital's bank is

• A) the cashing bank.
• B) the depositary bank.
• C) the intermediary bank.
• D) the payor bank.

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Definitions:

Stock Portfolio

A collection of stocks owned by an individual or an institution, diversified across various sectors.

Developed Countries

Nations with high levels of industrialization, a high standard of living, and developed infrastructure.

Industrialization

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods, involving increased mechanization.