ELI5- How do countries and large institutions pay each other?

Question

For example when a country pays its dues to the UN or IMF or when a company buys over another company for a large sum. Do they just simply ‘wire’ the funds or bank transfer?

In: Economics

Answer 1

Yes, they use checks and wires. There are limits to how much money can be sent via check, for example the IRS limits checks to $100 million or something like that, so for larger transactions they use just wires or other bank transfers.