How many parties are involved in a Bill of Exchange ?

Correct option is C

The correct answer is (c) 3

Explanation:
• A Bill of Exchange is a written order that binds one party to pay a fixed sum of money to another on demand or at a future date.
• It involves three parties — the Drawer, the Drawee, and the Payee.
• The Drawer makes the bill, the Drawee accepts it, and the Payee receives the payment.

Information Booster:
• The Bill of Exchange is defined under Section 5 of the Negotiable Instruments Act, 1881.
• It is used mainly in trade credit transactions.
• The Drawee becomes Acceptor after signing the bill.
• The Payee may or may not be the same as the Drawer.
• It serves as a credit instrument in business transactions