Question

Proper Analysis of data on bill of exchange

Answer 1

A bill of exchange refers to a written interest that does not bear any interest. A bill of exchange is generally used in international trade and aims at binding one party to pay a fixed amount of money to another party at a predestined future date. As explained by Investopedia, bills of exchange are just like checks and promissory notes. This implies that they can be drawn by banks or individuals and are also commonly transferable through the way of endorsements. In case of being endorsed by a bank, they can be called as bank drafts and in case of being issued by individuals, they are called as trade drafts.