Question

The effect of a blank endorsement is to make the check payable to the ( )

A. order of a specified person
B. Specified Person
C. Bearer
D. Named Person.

The ( ) of a promissory note has prime liability while the other parties have secondary liability .
A. holder
B. drawee
C. drawer
D. acceptor

A ( ) carries comparatively little risks and can be discounted at the finest rate of interest.
A. sight bill
B. bank draft
C. commercial bill
D. trade bill

To a draft, ( ) is the person to whom the order is addressed and who is to pay the money.
A. drawer
B. drawee
C. payer
D. payee

( ) is to fill up by the drawer the particulars in a bill of exchange the date of drawing, the name of the drawee, the time and amount of the payment, etc, and then sent to the payee.
A. to draw
B. presentation
C. acceptances payment
D. issuance

A ( ) endorsement is one which specifies the person to whom, or to whose order, the bill is to be payable, such as "Pay ... or to order of".

Answer 1

A blank endorsement makes a check payable to the bearer, the drawer has prime liability on a promissory note, a commercial bill carries little risk, the drawee is the person who is obligated to pay in a draft, and a special endorsement specifies the person to whom the bill is payable.

Step-by-step explanation:

The effect of a blank endorsement is to make the check payable to the bearer. This means that anyone who possesses the check can legally cash it. The drawer of a promissory note has prime liability, meaning they are legally obligated to repay the money. The other parties, such as the endorser and maker, have secondary liability, which means they are responsible for repayment if the drawer fails to pay.

A commercial bill carries comparatively little risk and can be discounted at the finest rate of interest. It is a bill of exchange used in commercial transactions. To a draft, the drawee is the person who is addressed and obligated to pay the money. Lastly, to fill up the particulars in a bill of exchange, the drawer needs to draw them, including the date, name of the drawee, time, and amount of payment.

A special endorsement is one that specifies the person to whom, or to whose order, the bill is to be payable.