What characteristics are necessary for a draft to be a check?
A) It contains an indorsement in blank.
B) It is payable on demand, and the drawee is a bank.
C) It is not an order to pay.
D) It is bearer paper.
E) There are no separate requirements; the requirements for a draft and a check are the same.

Question

Quizplus · Accepted Answer

To be considered a check, a draft must be payable on demand and drawn on a bank. Option A, C, and D are not necessary characteristics of a check. Option E is incorrect as there are specific requirements for a check, such as being drawn on a bank and payable on demand, that differ from other types of drafts.

What Characteristics Are Necessary for a Draft to Be a Check