WAEC Commerce 2006 Question 20

Question 20

Banking

Use the diagram (a Penny Bank PLC, Lagos Branch cheque dated 5th May 2006: 'Pay Udoka A. O. or Order the sum of Ten Thousand Naira Only', ₦10,000, signed John Uwa) to answer the question. Penny Bank Plc is the

A.drawee
B.payee
C.drawer
D.endorser

Show the answer and explanation

Answer: A (drawee)

Explanation

The bank on which the cheque is drawn is the drawee.