1. A written order or unconditional promise to pay a fixed sum of money on demand or at a certain time is called.....
1) Negotiable instrument
2) Garnishee order
3) Escheat
4) Red corner notice
5) None
2. In order to streamline the rules and regulations of negotiable instruments, the Negotiable Instruments Act was passed in ........
1) 1818
2) 1860
3) 1872
4) 1881
5) 1901
3. Which of the following is the Negotiable Instrument?
1) Bank draft, Bill of exchange, Bill of lading, Certificate of deposit, Cheque, Commercial paper, Dock warrant, Government promissory note, Hundi, Treasury bills, Warehouse receipt, Railway receipt and Railway reservation ticket
2) Aeroplane ticket, Indian rail ticket, Bank draft, Bill of lading, Certificate of deposit, Commercial paper, Dock warrant, Government promissory note, Hundi, Treasury bills, Warehouse
receipt, Railway ticket
3) Bank draft, Bill of exchange, Bill of lading, Certificate of deposit, Cheque, Commercial paper, Dock warrant, Promissory note, Hundi, Treasury bills and Warehouse receipt
4) Bank draft, Bill of exchange, Bill of lading, Certificate of deposit, Cheque, Commercial paper, Dock warrant, Government promissory note, Hundi, Treasury bills, Lorry receipt and Court order
5) None
4. The important feature of the negotiable instrument is ......
1) Consideration
2) Transferable
3) Validity
4) Conditional
5) All of above
5. An instrument in writing containing an unconditional order, addressed to a banker, to pay on demand a certain sum of money only to or to the order of certain person or to the bearer of instrument is called ......
1) Cheque
2) Bill of Lading
3) Bill of Exchange
4) Clayton Order
5) Hundi
6. The correct option is .......
1) Drawer is a person who make or draft the cheque
2) Drawee is a bank in the case of all cheques
3) Payee is a person to whom the cheque is given and is a person who take cash
4) Sometimes the drawer and payee in cheques may be same
5) All of above
7. Ramu has account in State Bank of India and he issued cheque to Rajesh. So ......
1) Ramu is drawer, Rajesh is drawee and State Bank of India is payee
2) Ramu is drawer, Rajesh and State Bank of India are drawees and any one of the above can be payee
3) Ramu is drawer, State Bank of India is drawee and Rajesh is payee
4) Rajesh is drawer, State Bank of India is drawee and Ramu is payee
5) All of above are drawee
8. Whether drawer can be payee?
1) No.
2) Yes, but the permission of RBI necessary nowadays.
3) Yes, by writing self cheque.
4) Yes, but the permission of bank necessary.
5) None
9. Which of the following is not an important feature of the Cheque?
1) It must be in writing
2) It must be drawn on specified banker
3) Must be issued by drawer with the permission of the bank to the drawee
4) The payee must be a definite person
5) Always payable on demand but not otherwise
10. Bearer cheque means .......
1) On cheque the cash cannot be taken without the permission of RBI
2) Payee name is written on instrument and can take cash across the counter
3) Payee name not revealed to banker and can take cash across the counter
4) Cheque given on the first date of every month
5) None
11. Crossed cheque means ......
1) Two lines put across the cheque to invalidate it
2) Ordering the bank to pay cash to anybody
3) Putting two or three lines across the top left of the cheque asking the bank to pay cash to payee through account only
4) The Cheque issued by RBI in favour of State governments and Central governments
5) None
12. If the drawer specifies the name of the banker on the face of the cheque, it is called ......
1) Zero crossing
2) No crossing
3) General crossing
4) Special crossing
5) Invalid crossing
13. Crossing of cheques can be done by ......
1) drawer only
2) drawee only
3) drawer, drawee and payee also
4) payee only
5) RBI only
14. When the drawee can refuse the payment of cash to the payee?
1) On receipt of notice of drawer's death
2) On receipt of notice of the drawer's insanity
3) Drawer requested the drawee to stop the payment
4) On the receipt of garnishee order
5) In all of the above situations, the drawee can refuse the payment
15. Stale cheque means ......
1) Crossing the date of 31 March in every year
2) Crossing the date of bank last working day in the month
3) Cheque written with red pen
4) Cheque validity period over from the writing date
5) None
ANSWERS
1-1
2-4
3-3
4-5
5-1
6-5
7-3
8-3
9-3
10-2
11-3
12-4
13-3
14-5
15-4
1) Negotiable instrument
2) Garnishee order
3) Escheat
4) Red corner notice
5) None
2. In order to streamline the rules and regulations of negotiable instruments, the Negotiable Instruments Act was passed in ........
1) 1818
2) 1860
3) 1872
4) 1881
5) 1901
3. Which of the following is the Negotiable Instrument?
1) Bank draft, Bill of exchange, Bill of lading, Certificate of deposit, Cheque, Commercial paper, Dock warrant, Government promissory note, Hundi, Treasury bills, Warehouse receipt, Railway receipt and Railway reservation ticket
2) Aeroplane ticket, Indian rail ticket, Bank draft, Bill of lading, Certificate of deposit, Commercial paper, Dock warrant, Government promissory note, Hundi, Treasury bills, Warehouse
receipt, Railway ticket
3) Bank draft, Bill of exchange, Bill of lading, Certificate of deposit, Cheque, Commercial paper, Dock warrant, Promissory note, Hundi, Treasury bills and Warehouse receipt
4) Bank draft, Bill of exchange, Bill of lading, Certificate of deposit, Cheque, Commercial paper, Dock warrant, Government promissory note, Hundi, Treasury bills, Lorry receipt and Court order
5) None
4. The important feature of the negotiable instrument is ......
1) Consideration
2) Transferable
3) Validity
4) Conditional
5) All of above
5. An instrument in writing containing an unconditional order, addressed to a banker, to pay on demand a certain sum of money only to or to the order of certain person or to the bearer of instrument is called ......
1) Cheque
2) Bill of Lading
3) Bill of Exchange
4) Clayton Order
5) Hundi
6. The correct option is .......
1) Drawer is a person who make or draft the cheque
2) Drawee is a bank in the case of all cheques
3) Payee is a person to whom the cheque is given and is a person who take cash
4) Sometimes the drawer and payee in cheques may be same
5) All of above
7. Ramu has account in State Bank of India and he issued cheque to Rajesh. So ......
1) Ramu is drawer, Rajesh is drawee and State Bank of India is payee
2) Ramu is drawer, Rajesh and State Bank of India are drawees and any one of the above can be payee
3) Ramu is drawer, State Bank of India is drawee and Rajesh is payee
4) Rajesh is drawer, State Bank of India is drawee and Ramu is payee
5) All of above are drawee
8. Whether drawer can be payee?
1) No.
2) Yes, but the permission of RBI necessary nowadays.
3) Yes, by writing self cheque.
4) Yes, but the permission of bank necessary.
5) None
9. Which of the following is not an important feature of the Cheque?
1) It must be in writing
2) It must be drawn on specified banker
3) Must be issued by drawer with the permission of the bank to the drawee
4) The payee must be a definite person
5) Always payable on demand but not otherwise
10. Bearer cheque means .......
1) On cheque the cash cannot be taken without the permission of RBI
2) Payee name is written on instrument and can take cash across the counter
3) Payee name not revealed to banker and can take cash across the counter
4) Cheque given on the first date of every month
5) None
11. Crossed cheque means ......
1) Two lines put across the cheque to invalidate it
2) Ordering the bank to pay cash to anybody
3) Putting two or three lines across the top left of the cheque asking the bank to pay cash to payee through account only
4) The Cheque issued by RBI in favour of State governments and Central governments
5) None
12. If the drawer specifies the name of the banker on the face of the cheque, it is called ......
1) Zero crossing
2) No crossing
3) General crossing
4) Special crossing
5) Invalid crossing
13. Crossing of cheques can be done by ......
1) drawer only
2) drawee only
3) drawer, drawee and payee also
4) payee only
5) RBI only
14. When the drawee can refuse the payment of cash to the payee?
1) On receipt of notice of drawer's death
2) On receipt of notice of the drawer's insanity
3) Drawer requested the drawee to stop the payment
4) On the receipt of garnishee order
5) In all of the above situations, the drawee can refuse the payment
15. Stale cheque means ......
1) Crossing the date of 31 March in every year
2) Crossing the date of bank last working day in the month
3) Cheque written with red pen
4) Cheque validity period over from the writing date
5) None
ANSWERS
1-1
2-4
3-3
4-5
5-1
6-5
7-3
8-3
9-3
10-2
11-3
12-4
13-3
14-5
15-4
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