Question

Question 11 Sylvia draws a check on ABC Bank payable "to the order of Ann Smith," Ann indorses it and deposits it in First Bank. Ann's bank is a: Oa drawee bank Ob. payee bank Oc collecting bank Od payor bank (4 points) Time remaining 24:10 Not Yet Answered Question 12 Barry presents to Wake Bank for deposit in his account a check for $100 made out to him by Richard. Wake Bank provisionally credits Barry's account on Monday, when is payment final? O a Automatically at the end of the third business day. Ob. Midnight Tuesday Oc. When Richard's bank receives the check Od. When the $100 has been collected from Richard's bank. (4 points) Not Yet Answered Time remaining: 2418 3:30 PM

Answer 1

Ans:

11. The correct answer is (c) Collecting Bank.

Sylvia draws a check on ABC Bank. therefore, Sylvia is drawer and ABC Bank is drawee bank. The check was payable to the order of Ann Smith. The check was endorsed by Ann and deposited in the first bank and therefore, Ann's is payee and Ann;s bank is the collecting bank. a bank that collects money from the account of the writer of a cheque on behalf of the person who has deposited the cheque into the bank.

12. The correct answer is (d) When $100 has been collected from Richard's Bank.

Provisional credit is a temporary credit issued from a financial institution into your bank account. It's often used in situations where a transaction has not been verified or is being disputed. Therefore, when the amount of $100 has been actually received from the Richard's Bank, barry will get the final payment.