Final answer:
Tim would use a draft to direct Howard to pay $600 to the order of Celeste. This is an unconditional written order to pay a specific sum of money to a third party.
Step-by-step explanation:
Through what kind of written instrument would Tim direct Howard to pay $600 to the order of Celeste? The accurate answer to this question is a draft.
A draft is an unconditional order in writing addressed by one person (the drawer) to another (the drawee), signed by the person giving it, requiring the drawee to pay on demand or at a fixed or determinable future time a sum certain in money to order or to bearer. In this scenario, Tim (the drawer) would be directing Howard (the drawee) to pay a certain amount of money ($600) to Celeste (the payee).
The other options listed do not correctly describe this situation: a certificate of deposit (CD) is a financial product purchased at a bank that earns interest, a note implies a promise to pay by the person making the note (not an order to another), and a dishonored draft is a draft that has been presented for payment and refused.