bills of exchange

In case of dishonor, who has the right to sue for the amount due on the bill?

• • Only the drawer

• Only the payee

• Any holder of the bill

• The drawee

the person to whom the amount is payable is called

• drawer

• drawee

• endorser

• payee

What is the primary purpose of a bill of exchange?

• To serve as evidence of a transaction

• • To facilitate payments

• To create a loan agreement

• • To provide credit

A bill of exchange can be issued for

• Cash only

• Goods and services

• personal loans only

• • Real estate transactions only

The due date for payment on a bill of exchange is known as:

• maturity date

• endorsement date

• acceptance date

• issue date

What does 'acceptance for honor' mean?

• Acceptance by the drawer

• Acceptance by a third party to avoid dishonor

• • Acceptance with a discount

• Acceptance that is conditional

A bill of exchange is usually payable in:

• GOODS

• CASH

• SERVICES

• CREDIT

If a bill of exchange is dishonored, what does it mean?

• The payment is made on time

• The bill is accepted by the drawee

• The payment is not made as promised

• • The bill is lost

A bill of exchange that is not paid on the due date is considered:

• valid

• dishonoured

• endorsed

• accepted

The 'maturity date' of a bill of exchange is determined by:

• • The date it was signed

• • The date it was presented

• • The terms agreed upon in the bill

• • The date the drawer wishes