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JAMB UTME - Commerce - 2004

Question 1 Report

The instruments of credit includes?
Answer Details
Instruments of credit refer to the various financial documents that facilitate the exchange of goods and services without the use of cash. These documents usually contain a promise to pay a certain amount at a later date. Two examples of instruments of credit are bills of exchange and promissory notes. A bill of exchange is a written order by one party to another party to pay a certain amount on a specified date. A promissory note is a written promise by one party to pay a certain amount to another party at a specified time in the future. Payment vouchers and statements of account are not instruments of credit, and billboards and postal stamps are not financial documents at all.
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