What is a form of payment that orders the issuing agency to pay the amount printed on the form to another party? And what is the type of check that a bank draws on its own in-house funds? Thank you!!
A form of payment that orders the issuing agency to pay the amount printed on the form to another party is called a check. A check is a written document instructing a bank or other financial institution to pay a specific sum of money from the account of the person or organization issuing the check, often referred to as the "drawer," to the person or organization named on the check, known as the "payee."
Now, let's move on to the second part of your question. The type of check that a bank draws on its own in-house funds is called a cashier's check. A cashier's check is a check issued by a bank using its own funds to guarantee payment. In other words, when you request a cashier's check from a bank, they withdraw the specified amount of money from their own account and issue a check on their own funds, guaranteeing that the check will be honored by the bank.
To obtain a cashier's check, you usually need to visit a bank branch in person and provide the amount of money you want the check to be made out for, along with the payee information. The bank then deducts that amount from your account or requires you to pay in cash, and they issue the cashier's check. This type of check is often used for larger transactions or when a guaranteed form of payment is required.
It's important to note that the specific terms and procedures for issuing and obtaining checks may vary between banks and countries. Therefore, it's always a good idea to check with your bank or financial institution for their specific requirements and processes.