Which bank is known as the one on which a check is written?

Which bank is known as the one on which a check is written?

• A. Depository bank
• B. Drawee
• C. Paying bank
• D. Receiving bank

Answer: (B)

The correct answer identifies the bank that is responsible for honoring the check when it is presented for payment. This bank is called the drawee because it is the institution that the check writer has an account with and from which funds will be withdrawn. When someone writes a check, they are instructing the drawee to transfer a specified amount of money to the payee (the person or organization receiving the check). The drawee bank then verifies the check and makes the payment if the account has sufficient funds. Understanding this role is crucial in comprehending the check-clearing process and how banking transactions operate. The other options represent different banking roles but do not pertain specifically to the bank that ultimately pays out the funds of the check.

The correct answer identifies the bank that is responsible for honoring the check when it is presented for payment. This bank is called the drawee because it is the institution that the check writer has an account with and from which funds will be withdrawn. When someone writes a check, they are instructing the drawee to transfer a specified amount of money to the payee (the person or organization receiving the check). The drawee bank then verifies the check and makes the payment if the account has sufficient funds. Understanding this role is crucial in comprehending the check-clearing process and how banking transactions operate. The other options represent different banking roles but do not pertain specifically to the bank that ultimately pays out the funds of the check.