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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

User Prasad Kp
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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.

User Majedur
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