Business Studies

Methods of Payment: Bank Notes and Coins | Characteristics of Legal Tender

len Alfred Ajibola - Sat, 15th June, 2019 @ 16:17: PM

Topics in Business Studies

Franchise Business Structure: Types, Advantages and Disadvantages What is Corporation? Types, Advantages and Disadvantages of Corporations What is Limited Liability Company? Its Advantages and Disadvantages Partnership in Business: Types, Advantages and Disadvantages Business Studies: What is Business Studies and Business? Management: Elements of Management What is Management? Importance of Management Advantages and Disadvantages of Air Transport Advantages and Disadvantages of Rail Transport Methods of Payment: Cheque - What is a Cheque? Cheque: Types of Cheque Cheque: Characteristics of Cheque Advantages and Disadvantages of Cheque Advertising and Types of Advertising Advantages and Disadvantages of Road Transport Advantages and Disadvantages of Water Transport Consumer Protection - Agencies of Consumer Protection Consumer Right and Protection Methods of Payment: Credit Cards and Debit Cards Methods of Payment: Bank Notes and Coins | Characteristics of Legal Tender


Academic Questions in Business Studies

Please check out our Test Your Knowledge page to see all Questions and Answers

Which of the following is NOT a characteristics of business?

  • A. The buyer and seller must always come into a contract agreement

  • B. Risk from unforseen circumstances is involved

  • C. They are subject to policies made by the government

  • D. All business transaction is aimed at making profit

  • E. It requires a discontinuous transaction between the buyer and the seller

  • F. Investments are required to begin a business

Which of the following is not a Right of Consumer Protection?

  • A. Right to Education
  • B. Right to Choose
  • C. Right to Safety
  • D. Right to the Good things of Life
  • E. Right to be Assured
  • F. Right to Compel

Which of the following is NOT a government agency of consumer protection?

  • A. Ministry of Sports
  • B. Ministry of Commerce
  • C. Consumer Protection Council
  • D. Ministry of Health
  • E. Ministry of Environment
  • F. National Drug Law Enforcement Agent

Define Consumer Protection.

In buying and selling, the retailer will usually operate from the stall while the wholesaler operates from the _____.

  1. Chain store
  2. Hyper market
  3. Hypo market
  4. Warehouse
  5. Mobile shop
  6. Supermarket

LEN ACADEMY SMART SCHOOL SOFTWARE

Image

Click here to read more on its smart academic features. Please kindly recommend to your school

Please click here to kindly support education


Methods of Payment:

As students or workers, we may have carried out one or more transactions through commercial banks. Some of these transactions may include:

  • Payment of school fees.
  • Purchasing items from an online store.
  • Transfer of money into another’s account.
  • Payment of examination fee and so on.

Note: The above transactions can be done either physically or online.

An online transaction is done over the internet and as a result, we do not have to be physically present.

With regards to an online transaction; During the registration and payment procedures for an examination, let’s say JAMB for instance, we don’t necessarily need to go to a bank or a JAMB agent or the physical office of JAMB. All we need do is to connect to the internet where we can register, make payments (perhaps through a credit card) and select our examination center (on JAMB's website).

The truth is: we live in a digital world where things are done online.

Please read on Notable Dates and Events of Internet Evolution here.

The methods of making payments through commercial banks include the following:

  1. Bank Note and Coins
  2. Cheques
  3. Credit Cards
  4. Debit Card
  5. Travellers' Cheque
  6. Bank Drafts

  • Bank Note and Coins

This is the most widely used form of payment (especially in some developing countries) since it involves the direct exchange of currency (money).

It’s also frequently used in developed nations although the cashless policy is encouraged for security reasons.

Note: Bank notes are coins are generally accepted as legal tenders.

A legal tender is a recognized and valid medium of payment according to the legal and financial systems of a country.

Note: A legal tender is used as a valid method of meeting financial obligations.

The images below shows an American coin (Half Dollar) and the Nigerian Note (1,000 Naira).

Half Dollar - Len Academy

1,000 Naira Note - Len Academy

Note: Different countries have got their respective currencies in circulation.

The table below shows some of these circulating currencies within a country and their symbols:

Country

Currency value

Symbol

 Nigeria

Naira

N

 Unites States of America

Dollar

$

 United Kingdom

Pounds

£

 Japan

Yen

¥

 France, Spain, Italy, Estonia and Latvia

Euro

In Nigeria, the currency denominations are N1,000, N500, N200, N100, N50, N20, N10 and N5.

Please read on the Nigerian National Symbol here.

Note: Coins are no longer in circulation within Nigeria.


Characteristics of Legal Tender (Bank Notes and Coins)

  1. The are easily recognized by the people living in a country where it is used.
  2. The act as the means of exchange accepted in every place where trade and market occur.
    Please read on Foreign Trade here.
  3. They are available in different denominations.
  4. They always have a store of value.
  5. They serve as the standard for deferred payment. Think as deferred payment as "buy now, pay later".
    Please read more on Deferred Payment here.
  6. A specific demonization will always have a fixed or specific worth. For instance, a 100 Naira note will always have a worth of "100 Naira" everywhere in Nigeria.
    Please read on Nigerian National Symbols here.
  7. They are not heavy in weight. This implies that they are easy to carry around.
    Please read on the Concept of Weight and Mass here.
  8. They normally exist as bank notes and coins.
  9. They are the unit of bank accounts.

If You are a Student, Teacher or Lover of Education, please click here to follow LEN ACADEMY on Google News


len

Alfred Ajibola is a Medical Biochemist, a passionate Academician with over 7 years of experience, a Versatile Writer, a Web Developer, a Cisco Certified Network Associate and a Cisco CyberOps Associate.


Please Register here or Login here to contribute to this topic by commenting in the box below.

CONTRIBUTE TO THIS TOPIC | ASK A QUESTION


Amazing facts in Business Studies

The world's 💰💰💰100 richest people 💰💰💰  earned enough money in 2012 to end global poverty four times over


NOTABLE POINTS IN Business Studies

Consumer protection refers to the ways or methods through which consumers enjoy maximum satisfaction from the goods they buy and services rendered to them.

The agencies of consumer protection assists in protecting the consumer rights. These agencies may also be referred to as the organs of consumer protection. Basically, we have three of them, they are:

  1. Government Agencies
  2. Independent Agencies
  3. Legislation

Please read on Consumer Protection here

One of the responsibilities of the government of every nation is to set up agencies or organizations that will protect the interest of the consumers and invariably, the people.

Below are some of the Government Agencies of consumer protection:

  • National Drug Law Enforcement Agency (NDLEA)
  • National Agency for Food, Drug Administration and Control (NAFDAC)
  • Consumer Protection Council (CPC)
  • Rent Tribunal
  • Ministry of Health
  • Ministry of Commerce
  • Ministry of Transportation
  • Ministry of Environment
  • National Wages and Salaries Commission

Please read on the Government Agencies of consumer protection here