Question

Elmo pays First National Bank $1,000 plus a service fee to draw a check on itself made payable to Go Delivery Service. This is a. a cashier's check. b. a certified check. c. a trade acceptance. d. a traveler's check.

Answer 1

Answer:

The correct answer is the option B: a certified check.

Explanation:

To begin with, the term of ''certified check'' refers to a type of check that was certified by the emisory bank stating that the account has enough money to make the payment, therefore that the bank's account of the user is currently with sufficient money in order to do the purchase for which the check was meant to.

Secondly, once established the concept of a certified check, it is understood that in the situation where Elmo pays a certain amount to his bank in order to draw a check to pay for something, then the bank has enough money in Elmo's account and therefore the check will be certified by the bank.