Question

A _______________ is defined as an order to pay money. A _______________ is a form of note in which the maker (typically a financial institution) makes a direct promise to pay money rather than ordering someone else to pay.a. draft; certificate of depositb. check; savings slipc. certificate of deposit; draftd. notice of deposit; savings slipe. None of the above

Answer 1

Answer:

a. draft; certificate of deposit

Explanation:

• The bank draft is the payment done on side of the payer that is the guarantee by the issuing bank. The draft ensures that the payee gets the secure form of the payment.  

• A bank draft is thus is a negotiable tool or instrument in an order to pay money as opposed to a promise to pay.  

• CD is similar to the money in the banks and its also called as a share certificate. With a time to earn a promised return and does always earn more interest than the regular savings account.