In addition, many transactions can be settled by the use of cheques drawn on bank deposits.
The buyers will pay for these securities with cheques drawn on their accounts with the commercial banks.
"I'll have a cheque drawn to you tomorrow."
Some may be notes and coin but the vast bulk will come from people writing cheques drawn on bank accounts.
Please could you ensure that cheques drawn on the above account are returned to me after they have been cashed.
It pays for this with cheques drawn on its account with the Bank of England.
The government, when it spends this £1 billion, pays with cheques drawn on its account at the Bank of England.
When people buy these securities, they pay for them with cheques drawn on banks.
Further, purchases of these securities by the general public would reduce banks' liquidity, as people paid with cheques drawn on their bank accounts.
The amount had been 5,338,650 pounds, the largest cheque ever drawn anywhere in the world.
