Question

What Is the Person Who Draws a Bill of Exchange Known as?

• A. Drawer
• B. Payee
• C. Drawee
• D. None of the above

Answer 1

The correct option is A

Drawer

Answer: (A) Drawer

In bill of exchange, there are three parties involved which are the drawer, the drawee and the payee. Drawer is the one who draws the bill of exchange, drawee is the person towards whom the bill of exchange is drawn and payee is the person who will be getting the payment from the bill of exchange. In most cases the drawer is also the payee.

Also read:

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