Fact Pattern 18-2
Tom draws a check,on his account in State Bank in New York,payable to Digital Media,Inc.,in San Francisco.Digital deposits the check in its ac-count at First National Bank.
-Refer to Fact Pattern 18-2. Digital's bank is
A)the cashing bank.
B)the depositary bank.
C)the intermediary bank.
D)the payor bank.

Question

Quizplus · Accepted Answer

Digital's bank, First National Bank, is the depositary bank because it received the deposit of the check drawn by Tom.

Fact Pattern 18-2 Tom Draws a Check,on His Account in State Bank in State