An order to pay money drawn on a bank and payable on demand is a:
A)check.
B)trade acceptance.
C)certificate of deposit.
D)promissory note.

Question

Quizplus · Accepted Answer

An order to pay money drawn on a bank and payable on demand is known as a check. A trade acceptance is a type of financial instrument used in international trade transactions to guarantee payment to a seller, a certificate of deposit is a time deposit with a bank that earns specified interest over a certain period, and a promissory note is a signed document containing a promise to pay a stated sum to a specified person or the bearer at a specified date or on demand. None of these options accurately describe an order to pay money drawn on a bank and payable on demand.

An Order to Pay Money Drawn on a Bank and Payable