Regulatory Framework For Business Transactions (RFBT) CEGG Practice Exam

A bill of exchange drawn on a bank and payable on demand is called a

Check Bill of lading Domestic bill Treasury bill

Correct Answer:

Check

Explanation:

A check is a bill of exchange drawn on a bank and payable on demand. In negotiable instruments, a bill of exchange is an order to pay money; when that order is directed to a bank and payment is required immediately on demand, it becomes a check. This distinguishes it from a bill of lading, which is a document of title for goods; from a treasury bill, which is a government debt instrument with a fixed maturity; and from a generic “domestic bill,” which doesn’t specify the essential feature of being drawn on a bank for immediate payment.

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