Which entities commonly issue money orders?

• A. Government agencies only
• B. Financial Institutions and Retailers
• C. Private individuals
• D. Cryptocurrency exchanges

Answer: (B)

Money orders are prepaid instruments that provide guaranteed funds. They’re typically issued by financial institutions and retailers. Banks and credit unions sell money orders because they can verify and back the funds in advance, ensuring the recipient can cash or deposit the payment without risk of dishonor. Retailers such as supermarkets, pharmacies, and convenience stores also offer money orders as a convenient service for customers who may not have a bank account or prefer a guaranteed payment method. The payer funds the money order upfront, and the instrument is made payable to the recipient.

Other options don’t fit because government agencies aren’t the only issuers, and private individuals can’t provide guaranteed funds through a money order. Cryptocurrency exchanges deal with digital assets, not traditional money orders.