Final answer:
A bank draft is a check written by a bank against its own funds in another bank, ensuring the availability and security of the funds. This instrument is different from a money order, certified check, voucher check, and third-party check. The correct option is E.
Step-by-step explanation:
A check written by a bank against its funds in another bank is called a E. bank draft. This is similar to a demand deposit or a checkable deposit in banks, which is available by making a cash withdrawal or writing a check. A bank draft ensures the recipient that funds are available and secured by the issuing bank.
It is used in significant transactions like buying a home or a car. A bank draft differs from a certified check, which is when the bank verifies that the individual has enough money to cover the check; a money order.
which is a prepaid payment; a voucher check, which is typically used by businesses to make payments from a controlled internal fund; and a third-party check, which involves one person writing a check to another person, who then endorses it over to a third party.
The mentioned terms involve the services of a depository institution, an institution that accepts money deposits and then uses these to make loans. Diversifying is the process of making loans or investments with a variety of firms, to reduce the risk of being adversely affected by events at one or a few firms.
Meanwhile, a debit card, like a check, signifies an order to the user's bank to transfer money directly and immediately from the user's bank account to the seller, facilitating transactions and easy access to one's money. The correct option is E.