Bills of Exchange Quiz

• A form of promissory note used only in banking transactions
• A negotiable instrument that serves as a guarantee of payment
• A written order to pay a specified sum of money to a designated person (correct)
• A type of currency used in international trade

• The person who orders the payment (correct)
• The person who receives the payment
• The person who witnesses the payment
• The person who guarantees the payment

• Functions as a receipt for goods or services
• Serves as a legal contract between two parties
• Facilitates trade by providing a method of payment (correct)
• Acts as a form of insurance against non-payment

<p>The party to whom the order to pay is addressed (D)</p> Signup and view all the answers

<p>It signifies the drawee's agreement to pay the bill as per its terms (D)</p> Signup and view all the answers

<p>Guaranteeing the payment of the bill (B)</p> Signup and view all the answers