BANKING AFFAIRS

Detailed explanation-1: -A check is a written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer. It is another way to instruct a bank to transfer funds from the payor’s account to the payee or that person’s account.

Detailed explanation-2: -Check. A written order instructing a financial institution to pay immediately on demand a specified amount of money from the check writer’s account to the person named on the check or, if a specific person is not named, to whoever bears the check to the institution for payment.

Detailed explanation-3: -A banker’s draft, also known as a banker’s cheque, is like asking a bank to write a cheque for you. You give them your money and they give you a cheque for that amount, to give to the person you’re paying.

Detailed explanation-4: -This is called the right of offset. Your deposit account agreement or loan agreement should contain an explanation of when the bank may exercise its right. However, federal law limits what a bank can do in some cases.