Which statement is true about cashier's checks?

Which statement is true about cashier's checks?

• A. They are payable to the issuer
• B. They can be used online only
• C. They are purchased at financial institutions
• D. They expire in 90 days

Answer: (C)

Cashier’s checks are a bank-issued form of payment with funds guaranteed by the bank. Because the bank itself covers the funds, they’re considered very secure for large or important payments. You obtain one by purchasing it from a financial institution—the bank debits your account for the amount of the check (plus any issuing fee) and then issues a check payable to the named recipient. This guaranteed funding is what makes cashier’s checks appealing to sellers who want assurance the funds will clear. They’re not payable to the issuer, they’re payable to a specific payee. They aren’t limited to online use; you can usually obtain or request them in person at a bank, or initiate ordering through your bank as appropriate. They don’t have a universal 90-day expiration—their validity and handling can vary by bank, but they are generally considered redeemable once presented for payment.

Cashier’s checks are a bank-issued form of payment with funds guaranteed by the bank. Because the bank itself covers the funds, they’re considered very secure for large or important payments. You obtain one by purchasing it from a financial institution—the bank debits your account for the amount of the check (plus any issuing fee) and then issues a check payable to the named recipient. This guaranteed funding is what makes cashier’s checks appealing to sellers who want assurance the funds will clear.

They’re not payable to the issuer, they’re payable to a specific payee. They aren’t limited to online use; you can usually obtain or request them in person at a bank, or initiate ordering through your bank as appropriate. They don’t have a universal 90-day expiration—their validity and handling can vary by bank, but they are generally considered redeemable once presented for payment.