Question

Sylvia draws a check on ABC Bank payable "to the order of Ann Smith." Ann indorses it and deposits it in her account at First Bank. First Bank is a:

A) Payee Bank
B) Drawee Bank
C) Endorsing Bank
D) Depository Bank

Answer 1

First Bank is a Depository Bank.

Step-by-step explanation:

The correct answer is D) Depository Bank.

The question asks about the role of First Bank in the given scenario. Sylvia writes a check on ABC Bank payable to Ann Smith. Ann then indorses the check and deposits it in her account at First Bank. In this case, First Bank acts as a depository bank because they receive the check and handle the deposit on behalf of Ann Smith. They are responsible for processing the deposit and crediting the funds to Ann's account.