- 1 Marks
Question
The person who orders money to be paid on his behalf to a named person through a cheque is called:
A. Payee
B. Payer
C. Drawer
D. Drawee
E. Payor
Answer
C
Explanation:
Option C is correct because the drawer of a cheque is the person who writes and signs the cheque, thereby instructing the bank to pay the specified amount to the named person (the payee). The drawer is the party who has the authority to authorize the bank to make the payment.
- Tags: Banking Law, Cheque, Drawer, Negotiable Instruments
- Level: Level 1
- Topic: Negotiable Instruments
- Series: MAY 2023
- Uploader: Theophilus