Match each of the numbered definitions with the correct term in the following list. Write the letter of your choice in the answer column.
a. Bad check
b. Draft or bill of exchange
c. Cashier’s check
d. Certified check
e. Check
f. Drawee
g. Drawer
h. Holder
i. Maker
j. Negotiability
k. Payee
l. Postdated check
m. Promissory note
n. Raised check
o. Stop- payment order
1. A person who is in possession of commercial paper. 1. _________
2. An instrument that is essentially a depositor’s order to his or her bank to pay money to a party named on the instrument. 2. _________
3. A characteristic of a credit instrument that allows its transfer from one party to another.
3. _________
4. A type of commercial paper that is essentially a written promise to pay money to a designated party. 4. _________
5. The party to commercial paper who makes a promise to pay. 5. _________
6. The party to commercial paper who is designated as the one to receive payment.
6. _________
7. The party to a draft against whom it is drawn. 7. _________
8. The party who draws a draft against another. 8. _________
9. A check drawn against an account with insufficient funds or against a bank in which the drawer has no funds. 9. _________
10. A check that bears a date later than the date on which the check was written.
10. _________
11. A check for which the bank ensures that the drawer has sufficient funds to make payment. 11. _________
12. A notice to a bank requesting that a certain check not be paid. 12. _________
13. A check drawn against a bank’s own funds. 13. _________
14. An unconditional written order from one party to another directing him or her to pay a certain sum to a third party. 14. _________
15. A check on which the amount has been altered to increase it. 15. _________