A written, dated, and signed order to the bank to pay a definite sum of money to a payee is called what?

A written, dated, and signed order to the bank to pay a definite sum of money to a payee is called what?

• A. Draft
• B. Promissory Note
• C. Bank Order
• D. Check

Answer: (D)

A check is a written instruction from a person who has a bank account to their bank to pay a specific amount of money to a named payee. It must be dated and signed by the account holder, and it is drawn on the drawer’s own funds, payable on demand. That exact description—written, dated, and signed, directing the bank to pay a definite sum to a payee—fits a check perfectly. A promissory note, on the other hand, is a promise by the maker to pay a sum to the holder, not an instruction to the bank to withdraw funds from the maker’s account. A draft is a pay order too, but it’s typically used in different contexts (often involving banks and third parties rather than a personal account draw). “Bank order” isn’t a standard term for a payment instrument. So the described instrument aligns best with a check.

A check is a written instruction from a person who has a bank account to their bank to pay a specific amount of money to a named payee. It must be dated and signed by the account holder, and it is drawn on the drawer’s own funds, payable on demand. That exact description—written, dated, and signed, directing the bank to pay a definite sum to a payee—fits a check perfectly.

A promissory note, on the other hand, is a promise by the maker to pay a sum to the holder, not an instruction to the bank to withdraw funds from the maker’s account. A draft is a pay order too, but it’s typically used in different contexts (often involving banks and third parties rather than a personal account draw). “Bank order” isn’t a standard term for a payment instrument. So the described instrument aligns best with a check.