Multiple choice

Which of the following negotiable instruments is drawn, accepted or endorsed without consideration?

  1. Inland bill of exchange

  2. Foreign bill of exchange

  3. Accommodation bill

  4. Promissory note
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Accommodation bill is a bill in which a person lends or gives his name to oblige a friend or some person whom he knows or otherwise. Hence, accomodation bill is drawn, accepted or endorsed without consideration.

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