In a ________, one party directs another party to make payment.
A)reverse letter of credit
B)commercial bill of exchange
C)commercial bill of trade
D)confirmed irrevocable foreign-exchange transaction

Question

Quizplus · Accepted Answer

A commercial bill of exchange is a type of financial instrument that directs one party (the drawee) to make payment to another party (the payee/vendor). The drawee agrees to pay the payee a set amount of money on a particular date. This is a common way for businesses to facilitate transactions, particularly for international trade. The payee can use the bill of exchange as collateral to obtain financing from a bank if necessary.

In a ________, One Party Directs Another Party to Make