A ________ is a distinct form of draft drawn on a financial institution and payable on demand.
A) promissory note
B) check
C) deed
D) letter of credit

Question

Quizplus · Accepted Answer

A check is a type of draft that is drawn on a financial institution and is payable on demand. A promissory note is a written promise to pay a specific sum of money at a future date, while a deed is a legal document that transfers ownership of real property. A letter of credit is a document issued by a bank guaranteeing payment to a seller, but it is not a form of draft payable on demand. Therefore, the best choice is B) check.

A ________ Is a Distinct Form of Draft Drawn on a Financial