Question

Explain the process of using checks.

Answer 1

A check is a written order that instructs a bank to pay a certain person a certain amount. When the check has been cashed or deposited by the payee, it makes its way back to your bank,which deducts the money from your account. If there is not enough money in your account to cover the check, the check will "bounce" back to the payee's bank and you and the payee will be charged a fine. To avoid the costs and embarrassment of "bouncing" a check, you should keep an accurate record of deposits and the checks you write.