The instrument of credit include
COMMERCE
POST UTME OAU
The instrument of credit include
- A) Billboards and postal stamps
- B) payment vouchers and statement of account
- C) bills of exchange and promissory notes
- D) bills of exchange and salary vouchers
Correct Answer: C) bills of exchange and promissory notes
Explanation
Bills of exchange are documents that are used in business transactions to order one party to pay a certain amount of money to another party at a specified future date. They are often used in international trade and can be bought and sold in financial markets.Promissory notes, on the other hand, are written promises to pay a specified amount of money at a future date. They are often used in lending situations, such as when someone borrows money from a bank.
Both bills of exchange and promissory notes are considered instruments of credit because they represent a promise to pay a certain amount of money in the future. These documents can be used as collateral or proof of creditworthiness when borrowing money or obtaining goods on credit.
Therefore, the correct answer to the question is Option C: Bills of exchange and promissory notes.
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