Match each banking payment service or financial facility on the left with its correct operational description in commercial trade on the right.
- Standing OrderA standing instruction given by an account holder to their bank to transfer a fixed sum at regular specified intervals to a beneficiary.
- Direct DebitAn authorization given by a debtor allowing a creditor to draw varying sums directly from the debtor's account when bills fall due.
- Banker's DraftA negotiable payment instrument drawn by a commercial bank upon its own funds to guarantee immediate settlement to a seller.
- Credit TransferA single banking instruction that allows a business entity to distribute funds directly into the bank accounts of multiple creditors simultaneously.
Answer
Standing Order matches fixed recurring payments set by the payer; Direct Debit matches variable payments claimed by the creditor; Banker's Draft matches bank-guaranteed payment instruments; Credit Transfer matches bulk payments to multiple accounts through one transfer.
Each banking service correctly pairs with its unique operational role in commerce: Standing Order provides fixed automated payments initiated by the debtor; Direct Debit authorizes variable creditor-initiated claims; Banker's Draft provides bank-guaranteed funds; Credit Transfer settles multiple creditor balances under a single instruction.
Step-by-Step Solution
Key Concept
Banking Services and Means of Payment in Commerce
Estimated Time:1m 30s