In home trade payment systems, a post office money order differs fundamentally from a postal order because a money order is issued for any specified custom amount up to a statutory limit and is strictly payable only to the named payee, whereas a postal order is printed in fixed face-value denominations and can be transferred to a third party by endorsement.
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Answer
True. A post office money order is issued for any specified amount up to a legal limit and is strictly non-transferable (payable only to the named payee), whereas a postal order is issued in fixed face-value denominations and can be transferred to a third party by endorsement.
The statement accurately reflects commercial practice in home trade. Money orders are used for remitting specific, non-standard amounts and are restricted to the designated recipient, whereas postal orders are pre-issued in fixed values and allow transfer to third parties.
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Key Concept
Distinction between Money Orders and Postal Orders in Home Trade