Monetary Instruments for Travel

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Questions and Answers

What three documents are needed for travel abroad

Passport, Visa/Entry Permit, Health (vaccination) Certificate

What is the purpose of a health (vaccination) certificate?

To prove that the person entering the country has been vaccinated against certain communicable diseases.

What is the purpose of hassal free travel/ facilitation of travel?

To enable people to travel freely and enjoy fully the rights connected to movement for the purposes of engagement in gainful economic activity

What is the purpose of a visa/entry permit?

<p>It is a foreign government stamping placed in the passport by a foreign endorsement or permit</p> Signup and view all the answers

What are some of the benefits of the CARICOM Single Market and Economy?

<p>Free movement of skills and labour, abolition of the need for work permit, free movement of goods and capital</p> Signup and view all the answers

What is the difference between a traveller's cheque and a bank draft?

<p>Travellers' cheques are purchased at banks or other financial agencies by travellers who, for security reasons, prefer Travellers' cheques to cash. A bank draft is drawn up by a bank on its account.</p> Signup and view all the answers

Why are credit cards useful for travel?

<p>They make it easier to purchase goods and services abroad. They are convenient and widely accepted</p> Signup and view all the answers

What are bank drafts used for?

<p>Bank drafts are a method to move funds from one bank to another when it is impractical to use cash</p> Signup and view all the answers

What is the main purpose of a tax clearance certificate?

<p>To prove that the tax burden has been paid.</p> Signup and view all the answers

What is the purpose of debit cards or bank cards while travelling abroad?

<p>A debit card is a plastic card, that can be used as an alternative payment method and is widely used to purchase goods over phone or the Internet.</p> Signup and view all the answers

What is the main purpose of a driver's licence?

<p>To prove the driver's competence.</p> Signup and view all the answers

What are some of the ways to find hotel information?

<p>The internet, Travel agents, the company's credit card number</p> Signup and view all the answers

What information should be provided when making a hotel reservation?

<p>The names of the people for whom the rooms are being reserved, the date and time of arrival plus length of planned stay, rooms required, name of the company, name of the event being attended and the cost of the rooms</p> Signup and view all the answers

What are two main ways of telling the time?

<p>The 12-hour clock and the 24-hour clock.</p> Signup and view all the answers

What is the purpose of letters of credit?

<p>Letters of credit can be used to obtain a certain amount of money from a local bank prior to leaving the country.</p> Signup and view all the answers

Flashcards

Foreign Currency Regulations

Rules about taking money out of a country. Some countries restrict taking physical currency, requiring it to be spent or exchanged before leaving.

Traveler's Cheques

Pre-paid checks for travel, purchased from banks/agencies, and secured by dual signatures for increased safety.

Bank Drafts

Payment instruments issued by a bank drawn on funds in another bank, often used for international payments.

Credit Cards

Cards used for global transactions and withdrawals in ATMs, charging local currency to the card.

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Letters of Credit

Used for large international payments, issued by your local bank and addressed to a foreign bank, limiting withdrawal amounts.

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Debit/Bank Card

A payment method used for various transactions, including internet purchases.

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Departure Tax

Tax payable when leaving a country, often included in airfare.

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International Driving Permit

Permit needed in addition to a local driver's license by some countries for car rentals abroad.

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Study Notes

Monetary Instruments

  • Obtaining foreign currency prior to travelling abroad is much easier than it used to be. However, currency regulations or should be adhered to in respect of money taken into or out of countries to be visited.
  • Some countries do not allow travellers to take currency (notes and coins) out of the country. The traveller must therefore ensure that all notes and/or loose change are spent whilst they are still in the country or else is exchanged for other currency before they leave.
  • Usual ways of taking money abroad from currency, are:
    • traveller's cheques
    • credit cards
    • letters of credit
    • bank drafts

Traveller's Cheques

  • Traveller's cheques are purchased at banks or other financial agencies by travellers who, for security reasons, prefer traveller's cheques to cash. Numbered in sequential order, the cheques are bank teller or other person handling the transaction.
  • When the cheque is cashed, the holder signs his/her name on the face of the cheque in the presence of the person who is redeeming it. The two signatures can then be compared to verify the identity of the person cashing the cheque. Clearly, this is more secure than carrying large sums of cash, which could be stolen and would amount spent.

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