CIBNBanking Principles

Primary difference between a standing order and a direct debit:

AStanding orders are fixed and payer-initiated; direct debits are usually variable and payee-initiatedCORRECT
BDirect debits are only for utility bills
CStanding orders need collateral
DDirect debits cannot be cancelled
AI
Toaster Teacher
Why the answer is A, and why the others tempt you.
Standing orders are set up and controlled by the payer for fixed amounts; direct debits are initiated by the payee and amounts vary.
Want this in Pidgin, Yoruba, Igbo or Hausa? Sign up free →

Practice more Banking Principles questions

CIBN Banking Principles has thousands more questions like this — with Worked answers on every one.

Start practicing free →See all Banking Principles questions