a bank draft is a cheque drawn by a bank on?
-
A.
another bank -
B.
itself -
C.
creditors -
D.
customers’ deposits
Correct Answer: Option B
Explanation
A bank draft is a cheque drawn by a bank on its own funds. 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. For this reason, they do not bounce because of a lack of funds.