Kirk presents an instrument that states "pay to the order of Liv" to Metro Bank for payment.This is a special type of draft drawn on a bank,ordering the bank to pay a fixed amount of money on demand.This is
A)a certificate of deposit.
B)a check.
C)a debit card transaction receipt.
D)a trade acceptance.

Question

Quizplus · Accepted Answer

The instrument stated in the scenario is a check. It is a type of draft drawn on a bank, ordering the bank to pay a fixed amount of money on demand. The other options given are not applicable in this scenario. A certificate of deposit is a type of savings account where the holder deposits a fixed amount of money for a fixed period of time, and earns interest on it. A debit card transaction receipt is a record of a purchase made using a debit card. A trade acceptance is a type of financial instrument used in trade finance, where the seller of goods draws a draft on the buyer, who accepts it and promises to pay the amount on a fixed date in the future.

Kirk Presents an Instrument That States "Pay to the Order