Which of the following instruments of payment could be used in international trade?

  • A Promissory note
  • B B. Postal order
  • C I. O.U
  • D Bill of exchange

The correct answer is D. Bill of exchange

A bill of exchange is a document used in international trade that binds one party to pay a fixed sum of money to another party on demand or at some point in the future. It is simply sent by the seller to the buyer directing the buyer to make payment for traded items within a specified time frame.

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