When processing a check, Platinum Bank encodes information, such as the amount of the check, on the item. Platinum thereby warrants to any subsequent bank or payor
A)the item has been returned to the drawer.
B)nothing.
C)the check has been processed manually.
D)the encoded information is correct.

Question

Quizplus · Accepted Answer

When a bank like Platinum Bank encodes information on a check, it is making a warranty that the encoded information, such as the amount of the check, is correct. This is a standard practice in banking to ensure the integrity of the information on checks as they are processed and passed between banks and payors.

When Processing a Check, Platinum Bank Encodes Information, Such as the Amount