Definition
Check is a written, dated, and signed document that instructs a bank to pay a specific amount of money from the account of the person writing the check (the drawer) to the person or entity named on the check (the payee).
Why It Matters
Checks provide a secure and traceable way to transfer funds without using cash. They serve as a legal instrument for payments, reduce the risk of carrying large sums, and create a record of transactions for both personal and business finance.
Example
If John writes a check for $500 to a contractor for home repairs, his bank will transfer $500 from John's account to the contractor's account once the check is deposited and cleared.