What is a document drawn on a bank that is payable on demand?

A check is a document drawn on a bank that instructs the bank to pay a specific amount of money to the person or entity named on the check. It is designed for immediate payment, making it "payable on demand." When a person presents a check to the bank where it is drawn, the bank is required to honor the check and provide the specified funds, as long as the account has sufficient balance. This immediate access to funds is what characterizes a check as a demand instrument.

In contrast, other documents like notes involve promises to pay over a specified period, while bills often refer to invoices or requests for payment rather than an instrument for direct cash withdrawal from a bank. A draft can also be viewed as a written order for payment, but it may not always be payable on demand as a check is since drafts often have a specified maturity date. Therefore, the defining characteristic of a check being payable on demand distinguishes it as the correct choice.