Question

A person who opens accounts at several banks, knowingly, issues a check that overdraws their account at bank 1, and then deposits a check in that account from their bank 2 account to cover the first worthless check is a _____.

Answer 1

Check kiter.

Step-by-step explanation:

What the exercise describes is a form of fraud commited with checks. The check kiter would take advantage of the float to make use of funds (that do not exist) in a bank account transforming a check in a form of unauthorized credit, like the exercise examplifies: Out of 2 accounts, you issue a check that overdraws their accout at bank 1, and then deposits a check in that account from their bank 2 to cover the first check. You "abuse" the float to make use of funds that don't exist.