Question

a written order telling a bank to withdraw a sum of money from your account to pay another person or business is what financial instrument?

a) allotment
b) iou
c) debt transfer request
d) check

Explanation:

Analyze the definition of the financial instrument

A written order directing a bank to pay a specific sum of money from a depositor's account to another person or business is the standard legal and financial definition of a check (or cheque).

Evaluate the given options

• A) Allotment: A systematic deduction from pay, not a direct written order to a bank to pay a third party.
• B) IOU: An informal document acknowledging debt ("I owe you"), not an order to a bank.
• C) Debt transfer request: Not a standard financial instrument matching this definition.
• D) Check: A negotiable instrument instructing a financial institution to pay a specific amount of money from a specific demand account.

Answer:

• (A) Allotment
• (B) IOU
• (C) Debt transfer request
• (D) Check (Correct answer)