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WAEC Commerce 1997 Question 27

Question 27

Banking

The Manager,
Afribank,
Lagos.
Please pay to Great Nigeria Insurance Company, from my account, a sum of N125.00 at the end of every month until further notice, starting from this month.
A. A. Adewale

The above instruction is a

  1. A.bill of exchange
  2. B.certified cheque
  3. C.promissory note
  4. D.standing order
  5. E.letter of credit
Show the answer and explanation

Answer: D (standing order)

Explanation

An instruction to a bank to pay a fixed sum regularly until cancelled is a standing order.