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Bills of Exchange Practice Test Questions
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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.

Common types of Bill of Exchange are:
Demand Bill: This bill is payable when it demanded. The bill does not have a fixed date of payment, therefore, the bill has to be cleared whenever presented.
Usance Bill: It is a time-bound bill which means the payment has to be made within the given time period and time.

Bills of Exchange Practice Test Questions
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20 Questions

1. What does an order to pay include?
2. How many days of grace does the drawer give to the drawee for payment of bills of exchange?
3. Bill Of Exchange acclaimed from Notary Public is known as?
4. How is the bill of exchange considered as accepted?
5. As per the Negotiable Instrument Act, 1881, which of the accompanying alludes to 'an instrument recorded as a hard copy (not being a monetary certificate or a cash note) containing unlimited endeavour, endorsed by the producer to pay on request or at a fixed or definable future time a specific amount of cash just to or to the request for someone in particular, or the carrier of the instrument'?
6. What is an Inland Bill?
7. What is Discounting of Bill?
8. What is a Foreign Bill?
9. Bills of Exchange contains an unconditional ___?
10. Debit Balance is displayed in which book of accounts?
11. What is a Trade Bill?
12. Promissory Note includes an unconditional ___?
13. The party who receives cash for bills receivable is known as?
14. Where is Bills Receivable recorded in?
15. What is an accommodation bill?
16. Who can pay the fee in cash mode at the notary public?
17. What is Endorsement Of Bill?
18. Who is liable to pay the noting charges?
19. Who is authorised to draw a bill of exchange?
20. Amount of Bill Discounted + Rate × Unexpired Period =?

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