Comprehension questions. 1. What is understood by cash.

1. What is understood by cash?

2. In what way is cash easy to use?

3. Why will travellers be obliged to change their money for local
currency of the country they visit?

4. Where are travellers expected to change money?

5. What is the rate of exchange?

6. Why will a commission be taken when you change money?

7. When is it convenient and when is it not to pay in cash?

8. Why is it not recommended to carry a lot of money in cash?

TRAVELLER’S CHEQUES

A traveller’s cheque is a bank draft for personal use of the purchaser. It is signed by the purchaser at the time of purchase from the national bank.

Traveller’s cheques are issued in major hard currencies in fixed-amount notes, e.g. a 20 US dollar note or a 100 Deutschmark note. They also bear the name of the issuing company, e.g. Thomas Cook Traveller’s Cheques.

A 1 per cent commission will be charged by the bank on sales of traveller’s cheques.

Traveller’s cheques are cheques which you can change for foreign local cash money at an overseas bank when you travel abroad. A commission of 1 or 2 per cent will be charged on traveller’s cheques by the bank for the transaction.

Traveller’s cheques are very convenient as a method of payment in tourism. They are used to pay bills in hotels, restaurants and shops.

They don’t have any expiry date. Once they are bought, they are valid for an unlimited period of time. You can take them along any time you travel overseas.

With traveller’s cheques you don’t have to carry large amounts of cash. Traveller’s cheques are very safe to carry. When the buyer signs them at the moment of buying, it means they will be protected from forgery, because he will have to countersign them in front of the staff member who will compare the two signatures before accepting them.

If they are lost or stolen, they will not be used by another person as long as they bear the signature of the buyer but no countersignature.

When traveller’s cheques are cashed, the customer will be asked to produce his or her passport for identification. Besides, all traveller’s cheques are numbered and a special record or sales advice will be given to the buyer with all the traveller’s cheques numbers. The buyer will be recommended not to keep the cheques and the sales advice together in one place and not to countersign them in advance. In case the cheques are lost, their numbers and amounts will be preserved. Thus, they will be refunded or replaced by the issuing company.

As travellers cheques come in different denominations, you can change both small and large amounts according to your needs.