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A bill of exchange is drawn by :

ACreditor

BDebtor

CBuyer

DNone of these

Answer:

A. Creditor

Read Explanation:

BILL OF EXCHANGE:

  • A bill of exchange is a credit instrument.

  • It is a written acknowledgement of a debt given by one person to another

  • It is drawn by creditor upon his debtor.

  • It directs the debtor to pay a certain sum of money on demand or on the of a certain period.

  • According to section 5 of the Indian Negotiable instruments Act of 1881, a bill of exchange is an instrument in writing, containing an unconditional order signed by the maker, directing a certain person to pay a certain sum of money, only to or to the order of a certain person, or to the bearer of the instrument.


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