Write True or False

Renewal is a request by drawee to extend the credit period of the bill.

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Solution

True

Explanation: Sometimes, the acceptor of a bill is unable to meet the bill on its due date. In such cases, he might request the holder of the bill to cancel the original bill and draw a new bill in place of the old one. This is known as renewal of bill.

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Renewal of bills of exchange is requested to __________.

When noting charges are paid by the bank at the time of dishonor of bill the Drawee credits :

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