Karen has a checking account at First Bank.Karen writes a check to Bonanza Apartments for her rent.Which of the following is true of this situation?
A) Karen is the drawer, First Bank is the drawee, and Bonanza is the payee.
B) Karen is the drawee, First Banks is the drawer, and Bonanza is the payee.
C) Karen is the payee, First Bank is the drawee, and Bonanza is the drawer.
D) Karen is the payee, First Bank is the drawer, and Bonanza is the drawee.

Question

Quizplus · Accepted Answer

Karen is the person who writes the check, making her the drawer. First Bank is the financial institution that holds Karen's checking account, making them the drawee. Bonanza Apartments is the recipient of the funds being transferred, making them the payee. Therefore, A) Karen is the drawer, First Bank is the drawee, and Bonanza is the payee is the correct answer.

Karen Has a Checking Account at First Bank