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      Question

      A bill of exchange was accepted by the drawee and later

      discounted by drawer with bank. On maturity, the drawee defaulted. Who is liable?
      A Drawee Correct Answer Incorrect Answer
      B Bank Correct Answer Incorrect Answer
      C Drawer Correct Answer Incorrect Answer
      D Both drawee and drawer Correct Answer Incorrect Answer

      Solution

      Bank will recover from drawer if drawee defaults. Drawerโ€™s contingent liability becomes actual.

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