State Bank agrees to accept a check by setting aside sufficient funds to cover the amount. This check is considered
A) deposited.
B) cashed.
C) certified.
D) a provisional credit.

Question

State Bank agrees to accept a check by setting aside sufficient funds to cover the amount. This check is considered​
A) ​deposited.
B) ​cashed.
C) ​certified.
D) ​a provisional credit.

Quizplus · Accepted Answer

When a bank agrees to accept a check by setting aside sufficient funds to cover the amount, it is considered as a certified check. The bank certifies the check by indicating that the necessary funds are available and placing a hold on the funds in the account to ensure that the check will be honored. This provides a higher level of security for the recipient of the check, as it guarantees that the funds will be available when the check is presented for payment.

State Bank Agrees to Accept a Check by Setting Aside