10 Questions
Which party is usually the exporter in a draft or bill of exchange?
Drawer
What is the act of taking the bill to the drawee and demanding payment or acceptance called?
Presentment
What is the party called who is to receive the payment on a draft or bill of exchange?
Payee
What is the act called when the drawee writes down the word 'accepted' on a draft or bill of exchange?
Acceptance
What is the party called who is to pay the money on a draft or bill of exchange?
Drawee
Which party is usually the importer in a draft or bill of exchange?
Drawee/payer
What is the act called when the drawee refuses to pay or accept a draft or bill of exchange?
Dishonor
What is the act of drawing a draft and signing it, followed by delivering it to the payee called?
Issue
What is the party called who writes the order and gives directions to another person to make a specific payment of money on a draft or bill of exchange?
Drawer
What is the party called who is to receive the payment on a draft or bill of exchange, and is also known as the original holder/transferor if the bill is transferred?
Payee
Test your knowledge on drafts and bills of exchange with this quiz! Learn about the parties involved and their roles, as well as the purpose and characteristics of these financial instruments.
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