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Question

Noting charges are paid in the event of _________ of a bill.

A
Withdrawal
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B
Payment
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C
Dishonour
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D
Deposit
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Solution

The correct option is C Dishonour
Noting is the recording of the fact of dishonor by a notary public which becomes an evidence of dishonor. When a bill of exchange is dishonor, in order to prove the fact, the holder may get the bill noted. Charges paid on noting are called as noting charges.

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