Final answer:
The check is said to have 'cleared' the bank when the amount is deducted from the payer's account. Debit cards, credit cards, and smart cards are forms of 'plastic money' used to facilitate payments but are treated differently by financial institutions.
Step-by-step explanation:
When a check is presented to a bank for payment and the amount is deducted from the payer's account, the check is said to have cleared the bank. The correct answer is: a) Cleared.
'Plastic money,' such as debit cards, credit cards, and smart cards, also facilitate transactions between buyers and sellers. A debit card allows for the immediate and direct transfer of money from a person's bank account to the seller. In contrast, a credit card represents a short-term loan from the credit card company to the purchaser, and a smart card stores a certain value for purchases. Unlike a check or debit card, credit cards and smart cards are not considered checkable deposits, hence not 'money' in the traditional sense. It's also essential to understand that deposits such as checking accounts are considered liabilities by banks, as the institution owes the funds to its customers.