Instruments of Exchange

An unconditional order from one person/organisation (the drawer) to another (the drawee) agreeing to make a payment in the future.

Sight bills of exchange are paid on presentation.

Term bills of exchange are paid at a given date in the future.

It is used frequently in international trade because it gives importers time to sell the before payment is required.

The electronic transfer of money that occur within and across financial institutions through computer based systems. EFT transactions include:

Credit Cards

Debit Cards

Standing Order - specific amount

Direct Debit - varied amount

Direct Deposits -salaries

The trading of goods and services using online communications. It includes:

Internet auctions

Social Media Marketplaces

Making banking transactions using a computer network that enables bank customers to use an appropriate type of telephone and the internet to access some services.

It is useful because it is a 24 hour facility.

It is also accessible anywhere.