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What is the primary function of a bill of exchange in international trade?
  • a)
    To act as a promissory note
  • b)
    To act as a means of payment
  • c)
    To act as a guarantee for payments
  • d)
    To act as a trade draft
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
What is the primary function of a bill of exchange in international tr...
The primary function of a bill of exchange in international trade is to act as a means of payment. It is a written order from the payer to the payee, directing the payment of a specified amount on a specified date. In international trade, an exporter may issue a bill of exchange to an importer, instructing them to pay a certain amount of money on a specified date. The bill of exchange acts as a means of payment for the goods or services being traded between the parties.
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What is the primary function of a bill of exchange in international trade?a)To act as a promissory noteb)To act as a means of paymentc)To act as a guarantee for paymentsd)To act as a trade draftCorrect answer is option 'B'. Can you explain this answer?
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What is the primary function of a bill of exchange in international trade?a)To act as a promissory noteb)To act as a means of paymentc)To act as a guarantee for paymentsd)To act as a trade draftCorrect answer is option 'B'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the primary function of a bill of exchange in international trade?a)To act as a promissory noteb)To act as a means of paymentc)To act as a guarantee for paymentsd)To act as a trade draftCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the primary function of a bill of exchange in international trade?a)To act as a promissory noteb)To act as a means of paymentc)To act as a guarantee for paymentsd)To act as a trade draftCorrect answer is option 'B'. Can you explain this answer?.
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