Sally opened a small boutique. Unfortunately, she had no credit and her suppliers wished to be paid immediately. Sally did not like to carry cash, so she paid by

Question

Quizplus · Accepted Answer

Writing cheques on her demand deposit account would be the best choice as it allows Sally to make immediate payments to her suppliers without carrying cash. A demand deposit account also allows for easy tracking of expenditures and monitoring of cash flow. Writing cheques on a term deposit account may incur penalties or loss of interest, a banker's acceptance may not be available to Sally without credit, and a promissory note or letter of credit may not provide immediate payment options.

Sally Opened a Small Boutique