Bill of Exchange

1. Bill of exchange is an instrument in writing, containing an unconditional order. (True)

2. A bill of exchange is signed by the person on whom it is drawn. (False)

3. A person to whom or as per his order, amount of bill is payable is  a payee. (True)

4. Honour of a bill means payment in accordance with the apparent tenor of the bill. (True)

5. Acceptance without making any change in the terms of the bill is called general acceptance. (True)

6. Acceptance with some change as regards the terms of a bill is called general acceptance. (False)

7. A bill of which payment to make on fixed period is after date bill. (False)

8. Drawee is a person who holds the title of the bill in due course. (False)

9. The inland bill which is drawn in and payable in the same country. (True)

10. Discounting means encashment of the bill before due date. (True)

11. Drawee can transfer the ownership of the bill. (False)

12. Endorsee is person in whose favour the bill is transferred. (True)

13. Endorsement means transfer of title of the bill from debtor to creditor. (True)

14. Retirement of bill means payment of the bill before due date. (True)

15. Noting charges are payable to the Notary public on honour of a bill. (False)

16. Payee is official person appointed by Central Government for noting of dishonour bill. (False)

17. Renewal is a request by drawee to extend the credit period of the bill. (True)

18. A bill can't be deposited into bank for collection. (False)

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