HOMEWORK BILL OF EXCHANGE

Which of the following statements is NOT true regarding bills of exchange?

• They cannot be voided.

• They cannot be cancelled.

• They guarantee payment.

• They are usually only used for domestic transactions.

Which of the following options defines a bill of exchange?

• A legally-binding, written document ordering one party to pay a specific amount of money to a second party.

• None of these answers are correct.

• A fee you pay when you exchange one product for another.

• A document stating that a bill has been paid in full.

Which of the following is a bill of exchange most similar to?

• A check

• A receipt

• A restaurant bill

• A mortgage payment

A bill promise contains:

•  A promise 

• An unconditional

• order

• Endorsee

The acceptor of bill of exchange is called:

• Drawee

• Endorsee

• Payee

• Drawer

The act of transferring the bill from one person to another is called:

• Discounting

• Acceptance

• Endorsement

• Retirement

The period of time after which a bill becomes payable, is called:

• Days of Grace

• Usance

• None of these

• Tenor

THE BILL OF EXCHANGE USED IN D/A MUST BE A

• SIGHT BILL

• BANK BILL

• USANCE BILL

• BANK ACCEPTED BILL

THE DRAFT USED IN COLLECTION IS

• A BANKER'S DRAFT, BASED ON BANK CREDIT

• A COMMERCIAL DRAFT, BASED ON COMMERCIAL CREDIT

• A BANKER'S DRAFT, BASED ON COMMERCIAL CREDIT

• ACOMMERCIAL DRAFT, BASED ON BANK CREDIT

THE BILL OF EXCHANGE USED IN D/P MUST BE A

• SIGHT BILL

• BANK BILL

• USANCE BILL

• BANK ACCEPTED BILL