Instruments of Exchange

Instruments of Exchange

What are instruments of exchange?

An instrument of exchange is anything that allows a transaction to take place. It allows money or goods to move from buyer to seller.

Types of Instruments of exchange

List seven instruments of exchange. Choose any THREE and give one situation where each may be used and one advantage and one disadvantage of each.

What instrument does this look like to you?

What instrument do you think this is?

You should know this one. What is it?

This is a?

Look carefully at this instrument. do you know what it is?

This one definitely looks familiar. What is it?

Tip 1

Did you know that there are three main types of payment instrument for making credit transfers and debit transfers? These are: Paper-based (cheque, bill of exchange and cash) Card based (debit and credit cards) Electronic Based 9mobile-wallet or electronic funds transfer.

Tip 2

There are five main channels for delivering money and payments through the banking system. They are: bank teller, ATM card, electronic debit card, computer and cellphone.

When desiding on the type of instrument to use, always consider the situation, its advantages and disadvantages.