Which statement about cashier checks is true?

Which statement about cashier checks is true?

• A. They are issued by retail stores
• B. They are issued by individuals
• C. They are always free for everyone
• D. They are typically issued by banks

Answer: (D)

Cashier’s checks are a payment guaranteed by the bank. When you buy one, you give the bank the funds, and the bank issues a check drawn on its own account, promising to pay the specified amount to the payee. This guarantees funds and makes cashier’s checks trusted for large transactions, such as real estate or car purchases. That’s why the statement saying they’re typically issued by banks is correct. Retail stores don’t issue cashier’s checks, and individuals don’t issue them—the checks they write are personal checks or other payment forms. Also, cashier’s checks are not usually free; banks typically charge a fee for issuing one.

Cashier’s checks are a payment guaranteed by the bank. When you buy one, you give the bank the funds, and the bank issues a check drawn on its own account, promising to pay the specified amount to the payee. This guarantees funds and makes cashier’s checks trusted for large transactions, such as real estate or car purchases.

That’s why the statement saying they’re typically issued by banks is correct. Retail stores don’t issue cashier’s checks, and individuals don’t issue them—the checks they write are personal checks or other payment forms. Also, cashier’s checks are not usually free; banks typically charge a fee for issuing one.