Jen signs a check "pay to the order of Key" drawn on Jen's account in Lakeland Bank to buy Key's car.Jen asks Lakeland Bank to indicate on the face of the check that it will accept it when Key presents it for payment.If the bank agrees,this will be
A)a cashier's check.
B)a certified check.
C)a trade acceptance.
D)a traveler's check.

Question

Quizplus · Accepted Answer

A certified check is a personal check that the bank certifies, indicating that the account has sufficient funds to cover the amount of the check. By indicating on the face of the check that it will accept it when Key presents it for payment, Jen is essentially asking the bank to certify the check, making it a certified check. A cashier's check is a check issued by the bank itself, and a trade acceptance is a type of specialized financial instrument used in certain types of commercial transactions. A traveler's check is a type of prepaid check used for travel purposes.

Jen Signs a Check "Pay to the Order of Key