Which of the following is a characteristic of a check?
A) It always draws its money from a financial institute.
B) It is created when credit is extended to a buyer by a seller.
C) It is a two-party instrument.
D) It is an unconditional written promise to pay.

Question

Quizplus · Accepted Answer

Checks are financial instruments that draw money from a financial institution where the drawer's account is located. They are not created when credit is extended, nor are they two-party instruments (since they involve at least three parties: the drawer, the payee, and the bank), and they are not unconditional promises to pay but orders to the bank to pay a specific amount.

Which of the Following Is a Characteristic of a Check