What is an order by a depositor on the bank to pay a sum of money to a payee known as?

The correct answer is check, which is a specific order issued by a depositor to a bank. In this financial instrument, the depositor instructs the bank to make a payment of a specified sum of money to the payee. A check contains essential details such as the amount to be paid, the name of the payee, and the date, and it is typically signed by the depositor, confirming the authority to withdraw the stated amount from their account.

The characteristics of a check as a negotiable instrument provide the payee with a secure means to receive funds directly from the bank, facilitating transactions and financial exchanges. This contrasts with other financial instruments such as drafts or promissory notes, which serve different functions or have unique elements not applicable to checks. An invoice, on the other hand, is a request for payment for goods or services rendered and does not represent an order to a bank to pay money. Therefore, the distinct nature and function of a check in the context of banking and financial transactions make it the correct choice.