Final answer:
A check issued by a financial institution that acts as both drawer and drawee is known as a teller's check. It is guaranteed by the issuing bank and is notably different from a demand deposit or the use of a debit card.
Step-by-step explanation:
A check for which the issuing financial institution is both the drawer and the drawee is called a teller's check. This type of check is a means of payment where the bank is both withdrawing the funds from its own account and is also responsible for paying the amount. A teller's check is similar in nature to a cashier's check and is guaranteed by the issuing bank. When someone needs to pay a party and wants to ensure the funds are available, they might use a teller's check instead of a personal check. This is different from a demand deposit, which is a checkable deposit in banks that is available by making a cash withdrawal or writing a check.
Financial institutions also diversify their risk by making loans or investments with a variety of firms, rather than putting all their funds into one area. Lastly, a debit card is a financial tool that, like a check, provides an instruction to the user's bank to transfer money directly and immediately from the bank account to the seller.