The person to whom the amount mentioned in the promissory note is payable is known as _________.

1

(a)

Promisee

Transfer of a negotiable instrument to another person by signing on it, is known as ________.

1

(a)

Endorsement

In a promissory note, the person who makes the promise to pay is called as _________.

1

(a)

Promisor

A bill of exchange is a ____________ instrument.

1

(a)

Negotiable

A bill of exchange is drawn by the ________ upon his _________.

1

(a)

Drawer, Drawee

A bill of exchange must be accepted by the payee.

1

(a) True

(b) False

A bill of exchange is drawn by the creditor.

1

(a) True

(b) False

A bill of exchange is drawn for all cash transaction.

1

(a) True

(b) False

A bill payable on demand is called time bill;

1

(a) True

(b) False

The person to whom payment is to be made in a bill or exchange is called payee.

1

(a) True

(b) False

Define negotiable instruments.

1

(a)

Negotiable instruments may be defined as the instruments whose holder can transfer the title of instruments.

What is Bill of Exchange?

1

(a)

Bill of Exchange is an instrument in writing containing an unconditional order signed by the drawer directing a certain person or to bearer of the instrument to pay a certain sum of money only to or to the order of a certain person.

Name the parties to bills of exchange.

1

(a)

(i) Drawer,
(ii) Drawee,
(iii) Payee.

Who is a drawer of bills of exchange?

1

(a)

Drawer of the bills of exchange is a person who draws the bills of exchange, and is typically the seller or creditor.

Who is a drawee of bill of exchange?

1

(a)

Drawee of the bill of exchange is a person upon whom the bill of exchange is drawn, and is the buyer or debtor.