A personal check that has a guarantee that the funds have been set aside by the bank for payment of the check is known as a:

A personal check that has a guarantee that the funds have been set aside by the bank for payment of the check is known as a certified check. This type of check is issued by a bank and verifies that the check writer has sufficient funds available in their account at the time the check is issued. When a check is certified, the bank sets aside the funds from the check writer’s account and guarantees that the funds will be available when the check is presented for payment. This provides security to the recipient, reducing the risk of the check bouncing.

Understanding the characteristics of other types of payment instruments helps clarify why a certified check is the correct answer. A cashier’s check is also a secure payment method, but it is drawn against the bank's own funds rather than an individual's account. A traveler’s check is a prepaid check issued by financial institutions, often used for travel purposes, allowing for easy replacement if lost or stolen. A money order is a prepaid financial instrument that is issued by a post office or financial institution but does not come with the same guarantees as a certified check. Knowing these distinctions reinforces the uniqueness of a certified check in ensuring that funds are guaranteed for payment.