Payable-on-Death (POD) Checks

A

The correct answer is A. Cashier's check.

A cashier's check is a check drawn by a bank on its own funds, rather than the funds of an individual account holder. The bank effectively acts as both the drawer and the drawee of the check, making it a more secure form of payment than a personal check.

In the case of a cashier's check, the bank guarantees the payment to the recipient, as the funds have already been collected and set aside by the bank. This means that the recipient can be confident that the check will not bounce due to insufficient funds.

The process of obtaining a cashier's check typically involves requesting the check from the bank, and then providing the bank with the necessary funds (plus any applicable fees). The bank then issues the check to the designated recipient, who can cash or deposit it as they wish.

It is worth noting that some banks may charge a fee for issuing a cashier's check, typically in the range of $5 to $10. This fee covers the cost of processing the transaction and ensuring that the check is valid and secure.

In summary, a cashier's check is a secure form of payment that is guaranteed by the bank, and is often used for large transactions or when the recipient requires a more secure form of payment than a personal check.