Question

How Do You Discount a Bill of Exchange?

Answer 1

Bill of exchange needs to be discounted when the drawer is in urgent need of money and the due date for the maturity of the bill of exchange is in future.

Bill of exchange is discounted by the bank by keeping a certain amount as discount and paying the drawer the rest of money.

Also read:

• MCQs on Bills of Exchange
• Difference Between Bill of Exchange and Promissory Note
• Bill of Exchange

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