Multiple choice

A bill of exchange may be dishonoured by

  1. non-acceptance only

  2. non-payment only

  3. non-acceptance or non-payment

  4. None of these

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A negotiable instrument may be dishonoured by non-acceptance or non-payment. It is only the bills of exchange which may be dishonoured by non-acceptance. Of course, any type of negotiable instrument - promissory note, bill of exchange or cheque - may be dishonoured by non-payment.