Instruments of Exchange

Question 1

List some instruments of exchange

Answer 1

bartering, money order, credit card, debit card, e-commerce, telebanking, electronic transfer, bill of exchange, cheque, bank draft, telegraphic money transfer, bank transfers, mobile money

Question 2

what is a bill of exchange?

Answer 2

An unconditional order from someone paying money to the person receiving money agreeing to make a future payment. The payment may be made whenever the bill is presented or on a stipulated date

Question 3

what is a cheque?

Answer 3

A printed form filled out by a person/organization instructing their bank to pay a sum of money to another person/organization

Question 4

what is a money order?

Answer 4

Used to make payments locally and abroad in the specified currency

Question 5

What is a bank draft?

Answer 5

A cheque made by a bank for a customer to make a substantial payment