WAEC Commerce 2004 Question 25

Question 25

Banking

A bill of exchange is made more negotiable if it has been

  1. A.endorsed
  2. B.accepted
  3. C.honoured instantly
  4. D.given special crossing
Show the answer and explanation

Answer: B (accepted)

Explanation

Once the drawee accepts a bill, it becomes a firm promise to pay and is easier to negotiate.