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For example, Amit sold goods to Rohit on credit for ` 10,000 for three months. To ensure payment on due date Amit draws a bill of exchange upon Rohit for ` 10,000 payable after three months. Before it is accepted by Rohit it will be called a draft.
The correct answer is option B) anything that is generally accepted in payment for goods and services or in the repayment of debt. Explanation. Bills of exchange is a written instruction, to pay specific amount on a specific date.
The three main types of bill exchange are accommodation bills, time bills, and trade bills.
In international trade, the exporter, or seller, presents a bill of exchange to the buyer, or importer, who must sign the bill for it to be valid. The bill of exchange unconditionally requires the buyer to pay a certain amount either on receipt of the bill or at some specified date in the future.
The maker of a bill of exchange or cheque is called the drawer; the person thereby directed to pay is called the drawee.

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A bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.
The Medieval Bill of Exchange. A Simple Definition: The bill of exchange or lettre de change (later known as the acceptance bill and the draft) was simply an informal letter by which one merchant ordered his agent-banker in some other city to make payment on his behalf to another merchant in that distant city.
A bill of exchange, a short-term negotiable instrument, is a signed, unconditional, written order binding one party to pay a fixed sum of money to another party on demand or at a predetermined date.

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