Question 13
Purchase and Sale of GoodsUse the document below to answer questions 12 and 13.
₦200,000.00 Liverpool, U.K, June 2, 1995.
Three months after date, pay to or to the order of Mr. Okon Etim Esin
Two hundred thousand ..................... Naira
Payable at First Bank Plc,
Lagos
No. 5 Due Sept. 2, 1995
Imo Edit Enoh
Liverpool.
The document represents a
- A.bill of exchange
- B.cheque
- C.money order
- D.promissory note.
Show the answer and explanation
Answer: A (bill of exchange)
Explanation
It is an order by the drawer to pay a sum to a named person at a fixed future date, i.e. a bill of exchange.