Question

Andre visits his bank and requests a check payable to his utility company. The teller creates a check payable to the utility company drawn from the bank's own account, and funds are taken from his checking account. What type of check did Andre use to pay his utility?

A) Personal check
B) Cashier's check
C) Certified check
D) Money order

Answer 1

Andre used a Cashier's check to pay his utility company, which is a payment guaranteed by the bank and often used for transactions requiring assured payment.

Step-by-step explanation:

Andre used a Cashier's check to pay his utility company. A Cashier's check is a check guaranteed by a bank, drawn on the bank's own funds and signed by a cashier. Such checks are used when the payer needs to assure the payee that the funds are available. When a customer requests a cashier's check, the bank debits the customer's account for the amount of the check, ensuring that the funds are set aside and guaranteeing payment to the payee.

By using a cashier's check, Andre is utilizing a form of payment that is both secure and reliable. This financial instrument helps facilitate transactions by allowing customers to make payments without the immediate need for cash or personal checks, which may require additional verification.