Explain the following business terms:
(a) standing order
(b) bank draft
(c) legal tender
(d) money order
(e)I.O.U
(a) standing order
(b) bank draft
(c) legal tender
(d) money order
(e)I.O.U
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
Correct Answer: Option n
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.
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.