Principles of Business

Barter

Exchange of goods and services WITHOUT the use of money

Direct Production

Producing goods for one's own use, without the use of money or depending on others.

Surplus

Producing more goods than needed.

Money

Anything that is generally accepted as a medium of exchange for goods and services

Drawer

The maker or writer of the bill of exchange.

Drawee

The person who is ordered to pay (usually a bank or debtor).

Payee

The person who receives the payment.

Tele-banking

Making banking transactions using a computer network.

E-commerce

Buying and selling goods electronically via the internet.

(ATM)

Automated Teller Machine - a machine that dispense cash.

Bill of exchange

Is usually used to facilitate international trade between the importer and the exporter. This is a written order which binds a party to pay a fixed sum of money to the other party at a later date (usually 1,2 or 3 months later)

Electronic Transfers

This involves the electronic transfers of money from one account to another

Cheques

A written order by you the drawer to a drawee to pay a specified amount from your bank account to a payee.

Money Order

Which is sold by the bank to persons who wish to make overseas payment for goods and services. It clearly states the amount to be paid and the name of the person it is to be paid to.

Debit card

A card that allows you to spend money directly from your bank account.

Credit Card

A card that allows you to borrow money from the bank to make purchases and pay it back later.

Bank Draft

This is a cheque from one bank to another bank for payments in the name of a particular person or organization.