permitted
accepted
refused
None of these
Answer is Right!
Answer is Wrong!
The correct answer is: B. accepted
A bill of exchange is a written order from one party (the drawer) to another party (the
drawee) to pay a specified amount of money to a third party (the payee) on a specified date. The drawee must accept the bill of exchange before it can be presented for payment. This means that the drawee must agree to pay the amount of money specified on the bill.If the drawee does not accept the bill of exchange, it can be dishonored. This means that the drawer will not be able to collect the amount of money specified on the bill.
The following are the possible options for the question:
- A. Permitted: This is not an option because the drawee does not have to permit the bill of exchange. The drawee can either accept or refuse the bill of exchange.
- B. Accepted: This is the correct option because the drawee must accept the bill of exchange before it can be presented for payment.
- C. Refused: This is an option because the drawee can refuse to accept the bill of exchange. If the drawee refuses to accept the bill of exchange, it will be dishonored.
- D. None of these: This is not an option because one of the options is correct.