How many parties are there in a bill of exchange?

The correct answer is B. There are three parties in a bill of exchange: the drawer, the drawee, and the payee.

• The drawer is the person who creates the bill of exchange and orders the drawee to pay the amount specified to the
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  payee.
• The drawee is the person who is ordered to pay the amount specified on the bill of exchange.
• The payee is the person who is entitled to receive the amount specified on the bill of exchange.

A bill of exchange is a negotiable instrument, which means that it can be transferred from one party to another by endorsement. When a bill of exchange is endorsed, the endorser becomes the new payee and is entitled to receive the amount specified on the bill of exchange.

A bill of exchange is a valuable financial instrument and can be used to settle debts, finance transactions, and raise capital.