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Q: Which of the following is an example of a specialized check? A. Personal check B. Notarized check C. Registered check D. Money order
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Asked 9/6/2010 1:47:19 PM
Updated 9/6/2010 5:02:09 PM
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I've never heard the term "specialized check," nor could I find it online, but I would think that a registered check would be the answer.
Added 9/6/2010 4:30:47 PM
Specialized Checks
Check writing can be a convenient way to pay for bill or services, and it decreases the risks associated with carrying large amounts of cash. While cash can be stolen, it is much more difficult to forge a check and steal money from an account with a checkbook. Sometimes, you will have to pay a person or service provider, and they will be unable to accept a personal check or cash. In this situation, there are several kinds of specialized checks that pay similar to a personal check but offer different advantages.
Cashiers Checks
A cashier’s check is an often preferred form of payment. To buy a casher’s check, you will go to a bank, grocery store, or retailer. You will pay the retailer the full amount you want the cashier’s check for, in additional to any small costs they add on to cover printing. The retailer will then issue you a cashier’s check for the full amount and addressed to the person you are paying. This method is preferred by many service providers because it ensures they will receive payment. A cashier’s check from a respected company can guarantee payment because you have already paid the cashier.
Travelers Checks
Traveler’s checks are an interesting form of specialized check preferred by traveling tourists and business people. Traveler’s checks are bought from a bank in advance of a trip. They are bought for specific denominations, and people usually buy several different amounts of traveler’s checks. Traveler’s checks offer the convenience of paying for items while abroad without having to carry a lot of money or cards. This decreases the risk of stolen money. Traveler’s checks are signed twice – once when they are purchased, and again when they are being given to a service provider. Unused traveler’s checks can be returned for cash or deposit to the bank they were purchased from. Various companies offer their own version of traveler’s checks. Each company has a different policy for lost or stolen checks. It is important to know your company’s policy on lost or stolen checks, and to keep your checks in a safe place.
Money Orders
Money orders are similar to cashier’s checks. They are paid for in advance at a grocery store, bank, or retailer. They usually cost a few dollars, and you will pay this fee in addition to the full amount the money order is to be made out for. Small business, mail order payments, and some utility companies prefer this method of payment because it is safe. When you purchase a money order, the company you give the money order to runs no risk of a returned or bad check. This saves them money and ensures accurate records.
Added 9/6/2010 5:02:09 PM
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