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What is a Trade Bill?

3. What is a Trade Bill?

1. Bill of exchange drawn on and accepted by a trader in payment for goods
2. Bill of exchange that is drawn in one jurisdiction and payable within another.
3. Bill of exchange that is or on its face purports to be both drawn and payable within the jurisdiction.
4. Bill endorsed by one person for another without consideration to enable that other to raise money or obtain credit thereby.

Answer: A) Bill of exchange drawn on and accepted by a trader in payment for goods

Explanation:

A time draft or bill of exchange becomes a trade acceptance when signed by an acceptor.