The candidates performance in this question was very poor. They exhibited lack of knowledge of these means of payments. Some expected answers were as follows:
Money order
- This is method of payment provided by post office.
- The person paying will give the name and address of the person to be paid, and the payer pays the amount plus commission.
- The post office then arranges to pay the person at the other end.
Promissory Note
This is written by the person to pay another a stated sum of money on a particular date. It is not negotiable.
Bank draft
This is a cheque drawn by a bank on itself instead of a customer’s current accounts. etc.
