Which instrument is a check created by a seller that has the buyer's checking account number but no signature?

• A. DEMAND DRAFT
• B. CERTIFIED CHECK
• C. MONEY ORDER
• D. TRAVELLER'S CHECK

Answer: (A)

Demand draft is a payment instrument issued by a bank that orders another bank to pay a specified amount to a recipient. It’s created by the seller (the issuing bank) for the buyer, and it often includes the buyer’s checking account number to identify the funds source, but it doesn’t require the buyer’s signature. That bank-guaranteed nature is why a draft can be issued without the buyer signing it.

This differs from a certified check, which is a personal check that the bank guarantees and that carries the drawer’s signature; a money order, which is prepaid and not tied to a specific checking account and typically involves a purchaser’s sign‑in; and a traveler’s check, which is prepaid and requires the purchaser’s signature (and countersignature) at use.