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What is the financial instrument of guaranteed payment, which may be purchased from a bank, a post office, or some convenience stores?

1) Cheque
2) Money Order
3) Demand Draft
4) Banker's Cheque

User Brunettdan
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1 Answer

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Final answer:

A 2) Money Order is the financial instrument that provides a guaranteed form of payment and can be purchased from a bank, a post office, or some convenience stores. It is prepaid, secure, and doesn't require a bank account.

Step-by-step explanation:

Financial Instrument for Guaranteed Payment

The financial instrument that assures guaranteed payment and can be purchased from a bank, a post office, or some convenience stores is a Money Order. Unlike cheques, money orders do not require a bank account and are prepaid, which means they provide a more secure form of payment to the recipient because the funds are guaranteed. When someone needs to make a payment without cash, they may choose a money order, which is widely accepted as a method of payment and is especially useful for those without access to traditional banking services or who are looking to send money through the mail securely.

A money order is particularly valuable in situations where the payer or the payee prefers not to exchange cash or when a non-digital payment is needed. Moreover, it is a preferred option for individuals who do not have a checking account but need to make a payment that cannot be handled with cash. It's important to keep the receipt for a money order as proof of purchase, which can be used to track or cancel the payment if it gets lost or stolen.

User Emanuele Bezzi
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