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The seller or creditor who owes the money is known as ----.

Adrawer

Bdrawee

Cendorser

Dpayee

Answer:

A. drawer

Read Explanation:

PARTIES TO A BILL OF EXCHANGE:

There are three parties to a bill of exchange :

  1. Drawer:

  • The person who draws or writes the bill is called the drawer or maker.

  • The drawer must be the seller or creditor to whom money is owing.

  1. Drawee:

  • The drawee is the person on whom the bill is drawn.

  • He is the purchaser or debtor who is ordered by the drawer to pay the amount.

  1. Payee:

  • The person who has the right to receive the amount of the bill is called the payee.

  • The payee may be a third person or the drawer himself.


Related Questions:

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The drawer of a cheque is always a -----.