Question
Describe five means of payment that a trader may use to settle business debts.
Answer
i) Cash - where a trader accepts or uses currency notes and coins for payment
ii) Bills of exchange - where a trader discounts or uses an acceptance bill of exchange to pay.
iii) Debit cards that allows traders to make payment without carrying money
iv) Money order-means of payment provided by the postal corporation on request.
v) Cheque - order to the bank to pay the person named the amount indicated in the cheque
vi) Postal order - means of payment sold by the postal corporation in fixed denominations.
vii) Credit transfer - means of paying a large group of people using a single cheque
viii) Standing order - An order by an account holder to his bank to pay a fixed sum of money to a named person /institution until the order is revoked.
ix) Credit cards that allow traders to make payments without carrying money
ii) Bills of exchange - where a trader discounts or uses an acceptance bill of exchange to pay.
iii) Debit cards that allows traders to make payment without carrying money
iv) Money order-means of payment provided by the postal corporation on request.
v) Cheque - order to the bank to pay the person named the amount indicated in the cheque
vi) Postal order - means of payment sold by the postal corporation in fixed denominations.
vii) Credit transfer - means of paying a large group of people using a single cheque
viii) Standing order - An order by an account holder to his bank to pay a fixed sum of money to a named person /institution until the order is revoked.
ix) Credit cards that allow traders to make payments without carrying money
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