Which type of cheque is specifically mentioned as being issued in another country?

Study for the BAFT Certificate in Principles of Payments Test. Utilize flashcards and multiple-choice questions, with hints and explanations for each query. Prepare thoroughly for your exam!

The type of cheque specifically mentioned as being issued in another country is the local bank cheque. This cheque is typically drawn on a bank located in the country where it is issued, making it useful for transactions that require a cheque to be processed in a specific local banking environment. Local bank cheques facilitate international transactions by allowing foreign entities to receive payments in their local currency, thus simplifying the payment process and reducing concerns about currency conversion and international banking fees.

In contrast, a banker's draft is a guaranteed payment instrument issued by a bank, but it does not inherently pertain to transactions in another country. Similarly, a cashier's cheque, while also a guaranteed form of payment issued by a bank, is commonly used domestically. A certified cheque, which is a personal cheque that has been verified and guaranteed by the bank, may also not specifically apply to international contexts. Therefore, the local bank cheque is the most relevant answer in the context of cheques issued in countries other than the one from which a payer may be operating.

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