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Answer Posted / guest
Bills of exchange are similar to checks and promissory
notes. They can be drawn by individuals or banks and are
generally transferable by endorsements. The difference
between a promissory note and a bill of exchange is that
this product is transferable and can bind one party to pay a
third party that was not involved in its creation. If these
bills are issued by a bank, they can be referred to as bank
drafts. If they are issued by individuals, they can be
referred to as trade drafts
Amit Kumar
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