Match each commercial banking service or instrument listed on the left with its appropriate operational application or definition on the right.
- Standing OrderInstructing a bank to pay regular, fixed sums of money to a specified beneficiary at designated time intervals.
- Bank OverdraftPermitting a current account holder to withdraw money in excess of their account balance up to an agreed limit.
- Credit TransferSettling multiple debts or payments to different account holders using a single bank payment instruction.
- Night Safe FacilityAllowing business owners to securely deposit cash and valuables into the bank outside normal operating hours.
Answer
Standing Order matches with instructing a bank to pay regular, fixed sums to a named beneficiary; Bank Overdraft matches with permitting a current account holder to draw funds exceeding their credit balance; Credit Transfer matches with settling multiple payments to different accounts using a single payment instruction; Night Safe Facility matches with allowing business owners to securely deposit cash outside normal operating hours.
Each banking term correctly pairs with its authentic operational function: Standing Orders automate fixed recurring payments, Bank Overdrafts provide short-term credit flexibility on current accounts, Credit Transfers execute multi-payee settlements efficiently, and Night Safe Facilities safeguard after-hours business cash deposits.
Step-by-Step Solution
Key Concept
Commercial Banks: Functions, Services, and Credit Creation