10 Questions
Which party is responsible for issuing or producing the traveler's check?
Issuer or obligor
What is the main purpose of a bank draft?
To ensure the availability of funds without needing to check the character of the person issuing the check
Which type of bank draft is payable on demand or upon sight?
Demand Draft (sight draft)
Which party buys the traveler's check and will use it as a form of money?
Purchaser
Which type of bank draft is used globally or internationally?
International Draft
What is the main purpose of a money order?
To order a sum of money to be paid to the payee indicated on the instrument
Which party is the financial institution that sells the traveler's check?
Agent
What is the main difference between a Demand Draft (sight draft) and a Time Draft?
Demand Drafts are payable on demand or upon sight, while Time Drafts are payable sometime in the future
Which type of bank draft is issued by a bank in a single country?
Local Draft
What is the purpose of an Automatic Bank Draft (ABD)?
To take out money from the payer's account electronically at regular intervals
Test your understanding of how prices affect the amount owed and the functions of money including conveyance. Explore concepts related to the transfer of property and the impact of price changes on creditors.
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