Final answer:
The statement is true; checks are written orders from depositors to banks to pay specified sums to designated recipients.
Step-by-step explanation:
True, a check is indeed a written order signed by the depositor directing the bank to pay a specified sum of money to a designated recipient. The deposit made into banks that a depositor can demand at any time usually resides in checking accounts, which are checkable deposits. A check acts as an authorization for the depository institution to transfer the amount indicated from the account holder's balance to the party identified on the check. Conversely, a debit card offers a different mechanism where a direct and immediate transfer of money from the account holder's bank account to the seller takes place.
Writing checks or using a debit card facilitates transactions and provides easy access to demand deposits. The depository institution functions by accepting these deposits and then using them to make various loans, helping to diversify their financial activities. This diversification is a risk management strategy that involves spreading investments across a variety of firms.