Ray's New Higher Arithmetic · Art. 313 · Unit 19: Percentage with Time: True and Bank Discount
87. Banks, checks and drafts
Goal: Your student explains what banks did, and reads a check, a sight draft and a time draft, naming drawer, drawee and payee.
You'll need
- The book
- A slate, small whiteboard or scrap paper
- A notebook and pencil
What's in the book
Section IV, Bank Discount: kinds of banks, national and private banks, a sample check, a sample draft, sight and time drafts, indorsement, acceptance and grace.
The lesson, step by step
Warm-up
Ask: Has your student ever seen a paper check? What does it tell the bank to do?
The idea
Read:
A Bank is an institution authorized by law to deal in money.
The three chief provinces of banks are: the receiving of deposits, the loaning of money, and the issuing of bank-bills.
SayIn 1880 national banks printed their own paper money, called bank-bills.
Checks
Read:
A Check is a written order on a bank by a depositor for money.
Look at the sample check in the book. Who signed it? Who must indorse it before it is paid?
Drafts
Read:
A Draft is a written order of one person or company upon another for the payment of money.
A Sight Draft is one payable "at sight."
A Time Draft is payable a specified time "after sight," or "after date."
Name the parties on the book's sample draft: the drawer signs it, the drawee is told to pay, and the payee receives the money.
Acceptance
Read how a drawee agrees to pay a time draft: he writes "Accepted," the date and his name across the face, and
the draft is called an acceptance.
Wrap-up
Have your student write a pretend check and a pretend sight draft in the book's form, for a few dollars, between family members.