Bill of Exchange

What is a Bill of Exchange?

• a written order to a person requiring them to make a specified payment to the signatory or to a named payee

• A bill of exchange is an unconditional order in writing

• a promissory note

On of the main types of bill of exchange

• Trade bill

• Time Bill of Exchange

• Accommodation bill

A person who draws the bill is known as………..

• seller

• payee

• drawer

Bill payable on demand is called...

• time bill

• order bill

• bearer bill

If drawer transfers the bill before maturity date is known

• dishonour of a bill

• retirement of a bill

• renewal a of a bill

• endorsement of a bill

A bill payable on demand is called bill at sight

• true

• false

Drawee may have to pay interest to the drawer for the extended period of credit

• true

• false

A bill of exchange must be accepted by

• Drawer

• Drawee

• Payee

• Holder of bill

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

• discounting

• acceptance

• endorsement

• retirement

No. of parties in promissory note are

• 2

• 3

• 4

• 5