Which of the Following Is True of a Bill of Exchange

question 68

Multiple Choice

Which of the following is true of a bill of exchange?

• A) It is not considered a negotiable instrument.
• B) It is also referred to as a draft.
• C) It is a two-party instrument.
• D) It contains a conditional order from the drawer that directs the drawee to pay a definite sum of money to a payee on demand or at a specified future date.

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Definitions:

Specially Customized

Tailored or adapted for a specific purpose, user, or requirement, often involving unique modifications or designs.

Indemnification

A contractual obligation of one party to compensate for the loss incurred by another party due to specific acts or events.

Reimbursement

The act of compensating someone for an expense or loss, often by the original payer or a responsible third party.

Contractual Relationship

A legal bond created by the existence of a contract between parties, outlining specific duties and rights.