Multiple choice

Which of the following pairs is incorrectly matched?

  1. Clean bill - where the bill is not supported by any document of title to goods

  2. Supply bill - where the bill is drawn on the basis of transaction with the government

  3. Accommodation bill - a bill which is drawn without any consideration or without any sale or purchase of goods

  4. Foreign bill - a bill which is drawn in India and payable in India onl<font size="2">y</font>
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Foreign bill is a payment drawn up in one country that is payable in another country. An example of a foreign bill of exchange is an agreement drawn up between two countries for trading purposes.

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