Final answer:
The type of check guaranteed for payment by a bank is a cashier's or certified check. These are secure because the funds are drawn from or set aside by the bank, ensuring they will not bounce. Deposits in checking and savings accounts are liabilities to the bank, and managing these properly prevents overdrafts.
Step-by-step explanation:
The type of check that is guaranteed for payment by a bank is a cashier's check or a certified check. When a customer requests a cashier's check, the bank debits the customer's account for the amount of the check and adds the funds to its own account. The bank then issues the check to the payee, who can trust the payment because the funds are drawn from the bank's account, not the customer's personal account. This ensures that the check will not bounce due to insufficient funds in the payer's account. A certified check, on the other hand, is a personal check that the bank certifies to be good by verifying that the account has sufficient funds and then setting aside the funds until the check is cashed or returned. Deposits in the form of checking accounts, savings accounts, or certificates of deposit are seen as liabilities by banks because they owe these funds back to the customers. These deposits are typically called demand deposits because they must be provided to the account holder upon demand, either through withdrawal or payment via a check. It is important for individuals to maintain a sufficient balance in their accounts to cover the checks they write to avoid overdrafts, which occur when a check is written for more than the account balance. Checking accounts provide easy access to funds through checks or a debit card, acting as convenient tools for transactions. Banks may offer interest-bearing checking accounts or savings accounts with limited check-writing abilities, reflecting the evolving nature of banking services.