Asked by
Rebecca Desir
on Nov 30, 2024Verified
A check drawn on a bank is an order to pay a sum of money and an authorization to charge the amount to the drawer's account. The drawer may countermand this order by which of the following?
A) A canceled check.
B) A stop payment order.
C) A banker's acceptance.
D) A time draft.
Countermand
To revoke, cancel, or reverse an order or directive that has been previously issued.
Stop Payment Order
A request made to a bank by an account holder not to pay a check or payment that has been issued but not yet cashed.
Banker's Acceptance
A short-term financial instrument issued by a company but guaranteed by a bank as accepted for payment at a future date, often used in international trade.
- Understand the application of stop payment orders and their validity period.
Verified Answer
MJ
Learning Objectives
- Understand the application of stop payment orders and their validity period.