Which statement about Money Orders is true?

Which statement about Money Orders is true?

• A. Money orders must be paid with cash only
• B. They can be issued for any amount
• C. The Maximum Balance Issued for a Single Money Order Is $1000
• D. They Are Not Regulated

Answer: (C)

Money orders have a fixed limit per money order, which is $1,000. This limit helps manage risk and keeps tracking and customer protections in place. The statement that money orders must be paid with cash only isn’t accurate; while cash is a common payment, many locations also accept other forms such as debit cards or traveler’s checks. The idea that they can be issued for any amount is incorrect because there’s a cap, so for larger payments you’d use multiple money orders or another method. Money orders are regulated by postal and financial rules, so they are not unregulated. So the true statement is that a single money order’s maximum balance is $1,000.

Money orders have a fixed limit per money order, which is $1,000. This limit helps manage risk and keeps tracking and customer protections in place. The statement that money orders must be paid with cash only isn’t accurate; while cash is a common payment, many locations also accept other forms such as debit cards or traveler’s checks. The idea that they can be issued for any amount is incorrect because there’s a cap, so for larger payments you’d use multiple money orders or another method. Money orders are regulated by postal and financial rules, so they are not unregulated. So the true statement is that a single money order’s maximum balance is $1,000.