A draft drawn on a bank and payable on demand is called a?

A draft drawn on a bank and payable on demand is best described as a check. In financial terminology, a check is a specific type of draft that is used primarily for the purpose of transferring funds from a bank account directly to a payee. When someone writes a check, they are instructing their bank to pay the specified amount to the person or entity named on the check immediately upon presentation.

This immediacy is what distinguishes checks from other financial instruments. For example, while both notes and drafts can represent financial obligations, they are not necessarily payable on demand in the same way a check is. Similarly, a certificate typically refers to formal documents that signify ownership or entitlement to certain rights, such as shares in a corporation or a deposit account, and does not fit the definition provided in the question.

Thus, a check is the correct answer because it directly aligns with the definition of a draft that is drawn on a bank and is payable on demand.