Question

Which of the following must be present for a check to be legitimate?

i.Your signature
ii. a memo or note
iii.the payee
a. i and ii
b. iii only
c. i and iii
d. i, ii, and iii

Answer 1

A legitimate check requires your signature to authorize the payment and designation of the payee to whom the funds are intended. A memo or note is optional and not a requirement for the check's validity.

Step-by-step explanation:

The legitimacy of a check is contingent on several key factors being present. Firstly, your signature on the check is mandatory as it authorizes the bank to release the specified funds to the payee. Secondly, the payee must be designated, which means the person or entity to whom the check is made out must be clearly named. While a memo or note section on a check is available, it is not a requirement for a check's legitimacy; rather, it serves as an optional section for the issuer to include additional information about the payment. Therefore, the correct answer to the student's question is c. i and iii, meaning that for a check to be legitimate, it must have your signature (i) and the payee (iii).