Explain the following business terms: (a) standing order (b) bank draft (c) legal tender (d)...

Explanation

a.Standing Order; This is an order or instruction to the bank by a customer, to pay a certain sum of money to a named person or organisation on his behalf at regular intervals.

b.Bank Draft; It is a cheque drawn on a bank by itself or its branch to guarantee payment.

c.Legal Tender; This is a form of payment which by law a creditor must accept in settlement of a debt.

d. Money Order; This is a form of payment through the Post Office where the payer fills a form to include the payee's name, amount payable and the post office of collection.

c.IOU; This is drawn by the debtor to the creditor acknowledging a debt.