Fact Pattern 19-2
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 account at First National Bank.
-Refer to Fact Pattern 19-2. 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.

Fact Pattern 19-2 Tom Draws a Check, on His Account in State Bank