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Three party instrument in which the drawer orders the drawee to pay money to the payee.

a. Bill of exchange
b. Promissory note
c. Check
d. Money order

1 Answer

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Final answer:

A bill of exchange is a three-party instrument in which the drawer orders the drawee to pay money to the payee.

Step-by-step explanation:

The answer to the question is a. Bill of exchange.

A bill of exchange is a written order from the drawer (the party who issues the bill) to the drawee (the party who is ordered to pay) to pay a certain amount of money to the payee (the party who receives the payment).

For example, if a company purchases goods from another company on credit, they may issue a bill of exchange to the seller, instructing the buyer's bank to pay the seller a specific amount at a future date.

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User Majedur
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