Final Answer:
1. The (C) Sight Draft demands immediate payment by the drawee at the sight of the bill.
2. The operation process of draft includes (C) acceptance & payment.
3. There are three kinds of ways to fill up the payee, they are: (A) Restrictive payee, (C) To order, and (D) To bearer.
4. Generally speaking, there are three main endorsements, namely (A) special, (C) blank, and (D) restrictive. A (A) bill of exchange is a financial instrument.
5. In the event of a draft being dishonored, the holder has a right of recourse against the (C) endorser.
Step-by-step explanation:
A sight draft, denoted by immediate payment at the sight of the bill, signifies a type of financial instrument demanding prompt settlement from the drawee upon presentation. In the operation process of a draft, two critical phases involve acceptance and payment. Acceptance refers to the drawee's agreement to honor the draft, while payment signifies the fulfillment of the draft's terms.
Regarding the payee section, there exist three primary methods to fill it: 'to order,' specifying a specific recipient; 'to bearer,' indicating the holder of the instrument as the payee; and 'restrictive payee,' limiting payment to a specified entity or for a particular purpose. These variations offer flexibility and security in terms of payment handling and transfer.
Endorsements on financial instruments like bills of exchange come in three main forms: special, blank, and restrictive. Special endorsements mandate payment only to the specified party, while blank endorsements turn the instrument into a bearer form, allowing transfer by mere possession. Restrictive endorsements impose specific conditions or restrictions on payment.
A bill of exchange, among various financial instruments, serves as a written order requiring one party to pay a specified sum of money to another party at a determined date or upon demand.
If a draft is dishonored, the holder retains the right of recourse against the drawer, the individual who initiated the draft. This right allows the holder to seek payment or compensation for the dishonored instrument, providing a form of protection and legal remedy in case of non-payment.