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

B. itself

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.