what is bill of exchange and demerits of bill of exchange.
Answers
Answer:
A bill of exchange is a written order used primarily in international trade that binds one party to pay a fixed sum of money to another party on demand or at a predetermined date.
Disadvantages of bills of exchange are as under:-
1)the bills of exchange are for short term service this not good option for banking services.
2)if biils of exchange are not accepted then it is an additional burden on the person who was drawn it.
3)the discount allowed is also like an additional cost.
4)the drawee is liable to pay the bill in time as the date of payment is fixed.
5)promisory notes are only used in home reading business.
Answer:
a written order to pay a sum of money to a particular person on a particular date.
demerits
The bills of exchange are mainly used for short term service. ...
In case the bills of exchange are accepted by the bank, then it is an additional burden on the person who was drawn it.
The discount allowed in the bills of exchange is also like an additional cost.