Question

Kinds of Negotiable Instruments
The person who draws the bill is known as the -.

• A. Drawee
• B. Drawer
• C. Payee
• D. Endorser

Answer 1

Answer: (B)

Drawer

There are various common parties to the negotiable instruments:

1. Maker: the person who signs the promissory notes.

2. Drawer: the maker of the Bill of Exchange or a Cheque is called Drawer.

3. Drawee: the person who is directed to pay.

4. Payee: the person who will receive the money.

5. Acceptor: when the drawee signs on the bill for the consent, he becomes acceptor.