banker's draft

Quick Reference

A cheque issued by a bank and sold to a customer. This may be acceptable to a third party who would not accept the customer's cheque for the amount, which may be too large to be covered by any bank card. The bank's credit is better than that of the customer, and a banker's draft is unstoppable. The equivalent of the banker's draft in the US is the certified check.

Subjects: Economics.

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