ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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is a written order to a bank to pay the stated amount to the person or business named from a certain account.
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is a signature or instructions written on the back of a check authorizing a bank to cash or deposit the check.
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is the rate banks are charged to borrow money from the Fed.
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is a discount bond issued by the United States government.
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Detailed explanation-1: -Endorsing a check by signing the back of it is a security step that simultaneously helps to verify you as the proper recipient of the funds and authorizes the bank to complete the transaction.
Detailed explanation-2: -To receive the funds, the payee must sign, or endorse, the back of the check. This signature, called an endorsement, informs the bank or credit union that whoever signed the check is the payee and wants to accept the money.
Detailed explanation-3: -A bank endorsement is a guarantee by a bank confirming that it will uphold a check or other negotiable instrument, such as a banker’s acceptance, from one of its customers. This assures any third-party that the bank will back the obligations of the creator of the instrument in the event the creator cannot make payment.
Detailed explanation-4: -Signature Endorsements In a financial transaction where one party pays with a check, the person receiving the funds must endorse the check with a signature. A signature on the back of the check indicates that the transaction is complete and allows the transfer of money ordered by the check.
Detailed explanation-5: -Definition: Endorsements are a form of advertising that uses famous personalities or celebrities who command a high degree of recognition, trust, respect or awareness amongst the people. Such people advertise for a product lending their names or images to promote a product or service.