CASHIERS CHEQUE Meaning and
Definition
-
A cashier's cheque, also known as a bank check or treasurer's check, is a financial instrument issued by a bank on behalf of a customer. It is a guaranteed form of payment that is considered as good as cash. The cheque is drawn on the bank's own funds rather than the funds of a specific account holder.
To obtain a cashier's cheque, the customer provides the bank with the necessary amount of money, along with any applicable fees, to be transferred from their account to the bank's account. The bank then issues a cheque payable to the designated recipient. In this way, the bank becomes the payer and guarantees the full amount indicated on the cheque to the recipient.
A cashier's cheque is typically used for larger transactions where the payee requires immediate funds and wants to ensure the security and authenticity of the payment. It is a safer alternative to personal or business cheques that may bounce due to insufficient funds or other issues.
The recipient of a cashier's cheque can be confident in receiving the full payment, as it is backed by the issuing bank. These cheques are often used for large purchases like real estate transactions, expensive vehicles, or to settle debts. They are also frequently used for international payments, as they provide an added layer of security and are widely accepted globally.
Etymology of CASHIERS CHEQUE
The word "cashier's cheque" is a compound noun that originates from the combination of two words: "cashier" and "cheque".
The term "cashier" refers to an individual who works at a bank or financial institution responsible for handling and processing financial transactions. The word "cashier" itself comes from the Middle French word "cassier", meaning "box or chest". It is derived from the Latin word "capsa", which means "box" or "chest".
The word "cheque" is derived from the medieval Latin word "cauda", meaning "bill". It was later adapted in various European languages, including Old French as "cheke" or "eschequier", meaning "a chessboard" which was used to keep financial accounts. The English word "check" evolved from these variations and eventually became "cheque".
Similar spelling word for CASHIERS CHEQUE
