BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The drawer
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The drawee
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The payee
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The endorser
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Detailed explanation-1: -Signatory is not considered as party to any kind of Bill of Exchange. Explanation: A bill of exchange is a written order/document binding one or more than one parties to pay a fixed sum of money to another party either in lump-sum or over a period of time or on demand.
Detailed explanation-2: -Holder refers to a person; we mean the payee of the negotiable instrument, who is in possession of it. He is not involved in bill of exchange.
Detailed explanation-3: -There are 3 parties involved in a payment by bill of exchange: the drawer is the party that issues a bill of exchange – the ‘creditor’; the beneficiary or payee is the party to which the bill of exchange is payable; the drawee is the party to which the order to pay is sent-‘the debtor’.
Detailed explanation-4: -Endorser: Endorser is the person who transfers rights of payment. Endorsee: Endorsee is the person in whose favor the bill of exchange is endorsed by the drawer. Bearer: Bearer is the person in possession of the bearer bill of exchange.
Detailed explanation-5: -Crossing is not necessary for a bill of exchange.