Asked by
Benjamin Brown
on Nov 27, 2024
Verified
When a bank is both the drawer and drawee, a check functions the same as cash because the bank has committed itself to paying the item on demand.
Drawer And Drawee
Terms in check transactions where the drawer is the party that writes the check, and the drawee is the bank that is requested to pay the amount.
Functions
Refers to the roles, activities, or duties that are intended or expected to be performed by a person, system, or object.
Cash
Money in the form of bills or coins; physical currency that is used as a medium of exchange.
- Discern and distinguish different types of negotiable instruments, specifically promissory notes, drafts, and checks.
- Understand the concept of demand instruments and their immediate payable nature.
- Identify the characteristics that make a negotiable instrument a functional substitute for cash.
Verified Answer
VJ
Learning Objectives
- Discern and distinguish different types of negotiable instruments, specifically promissory notes, drafts, and checks.
- Understand the concept of demand instruments and their immediate payable nature.
- Identify the characteristics that make a negotiable instrument a functional substitute for cash.