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What is an accommodation bill?

6. What is an accommodation bill?

1. Bill of exchange drawn on and accepted by a trader in payment for goods
2. Bill of exchange that is drawn in one jurisdiction and payable within another.
3. Bill of exchange that is or on its face purports to be both drawn and payable within the jurisdiction.
4. Bill endorsed by one person for another without consideration to enable that other to raise money or obtain credit thereby.

Answer: D) Bill endorsed by one person for another without consideration to enable that other to raise money or obtain credit thereby

Explanation:

An accommodation bill, a note, or a draft is drawn and recognized by the cabinet and the drawee without having any thought in it. These drafts, notes, or bills are drawn to help it is possible that one party or all parties for their financial guide in a bill of trade.