The authority given to a bank to make regular payments on behalf of a customer...
COMMERCE
WAEC 2009
The authority given to a bank to make regular payments on behalf of a customer is
- A. credit transfer
- B. bank endorsement
- C. standing order
- D. bank overdraft
Correct Answer: C. standing order
Explanation
A standing order is an instruction given to a bank by an account holder, to make periodic payments to a named payee on a specific date. The bank makes the payment on behalf of the drawer (account holder). Here, the bank is referred to as the drawee.
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