McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 1. |
It is a ----------------- obligation of a banker to honour the cheques of the customer drawn against current |
| A. | Mutual |
| B. | Statutory |
| C. | Unstatutory |
| D. | All of the above |
| Answer» B. Statutory | |
| 2. |
In India, the law regulating the Negotiable instruments are |
| A. | Banking Regulation Act 1949 |
| B. | Reserve Bank of India Act 1934 |
| C. | Negotiable Instruments Act 1881 |
| D. | Companies Act 1956 |
| Answer» C. Negotiable Instruments Act 1881 | |
| 3. |
In Negotiable Instruments Act 1881, which section defines promissory note? |
| A. | Section 1 |
| B. | Section 2 |
| C. | Section 3 |
| D. | Section 4 |
| Answer» D. Section 4 | |
| 4. |
A drawer in the bill of exchange can also be a |
| A. | Paymaster |
| B. | Payee |
| C. | Banker |
| D. | Creditor |
| Answer» B. Payee | |
| 5. |
The rate at which RBI discounts approved bill of exchange is |
| A. | Bank rate |
| B. | Interest rate |
| C. | Exchange rate |
| D. | Discount rate |
| Answer» D. Discount rate | |
| 6. |
Who is primarily liable on a promissory note? |
| A. | Holder |
| B. | Maker |
| C. | Drawee |
| D. | Endorser |
| Answer» B. Maker | |
| 7. |
How many parties are mainly involved in Promissory Note? |
| A. | One |
| B. | Five |
| C. | Two |
| D. | Three |
| Answer» C. Two | |
| 8. |
In a bill of exchange, drawee is the person |
| A. | who draws the bill |
| B. | on whom the bill is drawn |
| C. | to whom the payment of the bill is to be made |
| D. | to whom the payment of the bill is not to be made |
| Answer» B. on whom the bill is drawn | |
| 9. |
------------ is a dead cheque |
| A. | Post dated cheque |
| B. | Stale cheque |
| C. | Ante dated cheque |
| D. | Pre dated cheque |
| Answer» B. Stale cheque | |
| 10. |
Name the person to whom the amount of the cheque is payable? |
| A. | Drawer |
| B. | Payee |
| C. | Drawee |
| D. | Acceptor |
| Answer» C. Drawee | |
| 11. |
Discounting of bills of exchange is |
| A. | Clean advance |
| B. | Secured advance |
| C. | Neither clean advance nor secured advance |
| D. | Unsecured advance |
| Answer» C. Neither clean advance nor secured advance | |
| 12. |
Expand NEFT |
| A. | National Electronic Fund Transfer |
| B. | Neutral Electronic Fund Transfer |
| C. | Nominal Electronic Fund Transfer |
| D. | Natural Electronic Fund Transfer |
| Answer» A. National Electronic Fund Transfer | |
| 13. |
A negotiable instrument drawn or make in India is called_______ instrument. |
| A. | Inland |
| B. | Foreign |
| C. | Time |
| D. | Clean |
| Answer» A. Inland | |
| 14. |
The following one is a negotiable instrument, negotiable by usage or custom |
| A. | Bill of Exchange |
| B. | Accommodation Bill |
| C. | Promissory Note |
| D. | Share warrant |
| Answer» D. Share warrant | |
| 15. |
The most important feature of a negotiable instrument is |
| A. | Free transfer |
| B. | Transfer free from defects |
| C. | Right to sue |
| D. | Both A & B |
| Answer» D. Both A & B | |
| 16. |
The following one is absolutely essential for a special crossing. |
| A. | Two parallel transverse lines |
| B. | Words "And company? |
| C. | Words "Not negotiable" |
| D. | Name of a banker |
| Answer» D. Name of a banker | |
| 17. |
Cheque is payable on |
| A. | Demand |
| B. | Usage |
| C. | Fixed future date |
| D. | After sight |
| Answer» A. Demand | |
| 18. |
The reasonable period allowed in India for the presentation of a cheque is |
| A. | 1 year |
| B. | 3 months |
| C. | 9 months |
| D. | depending upon custom |
| Answer» B. 3 months | |
| 19. |
Section 6 of the Negotiable Instruments Act defines ___. |
| A. | Cheque |
| B. | Bill of Exchange |
| C. | Promissory Notes |
| D. | Dishonour by non-payment |
| Answer» A. Cheque | |
| 20. |
If a Minor draw, indorse, deliver and negotiate Negotiable Instruments, it binds __ |
| A. | All the parties except minor |
| B. | All the parties including minor |
| C. | Minor Only |
| D. | Minor and Only Drawer |
| Answer» A. All the parties except minor | |
| 21. |
Dishonour of Negotiable Instrument by Non Payment is covered under section in Negotiable Instrument Act 1882… |
| A. | Section 90 |
| B. | Section 91 |
| C. | Section 92 |
| D. | Section 93 |
| Answer» C. Section 92 | |
| 22. |
Which of the following section in the Negotiable Instruments Act deals with the Bill of Exchange? |
| A. | Section 5 |
| B. | Section 6 |
| C. | Section 4 |
| D. | Section 13 |
| Answer» A. Section 5 | |
| 23. |
Which of the followings are not the Negotiable Instruments as defined by the Statute… |
| A. | Banker’s Note |
| B. | Promissory Note |
| C. | Bill of Exchange |
| D. | Cheques |
| Answer» A. Banker’s Note | |
| 24. |
Which of the following is/are true about the Negotiable Instruments Act, the Promissory Note is … A) Definition of Promissory Note is given in section 8 of the Negotiable Instrument Act B) Containing an unconditional undertaking C) To pay a certain sum of money only to a specific person or the bearer D) The seller is bound to accept the promissory note E) A document was written and signed by the payer/maker |
| A. | (A), (B) and (C) |
| B. | (B), (C) and (E) |
| C. | (B), (C), and |
| Answer» B. (B), (C) and (E) | |
| 25. |
The Negotiable Instruments (Amendment) Bill, 2017 inserted a provision allowing a court trying an offence related to cheque bouncing, to direct the drawer (person who writes the cheque) to pay interim compensation to the complainant. The interim compensation will not exceed ___% of the cheque amount? |
| A. | 15% |
| B. | 25% |
| C. | 30% |
| D. | 20% |
| Answer» D. 20% | |
| 26. |
Which of the following is/are true about bill of exchange? A) A bill of exchange requires in its inception two parties. B) A bill of exchange or “draft” is a written order by the drawer to the drawee to pay money to the payee. C) Bills of exchange are used primarily in international trade, and are written orders by one person to his bank to pay the bearer a specific sum on a specific date. D) Definition of ‘Bill of Exchange’ is mentioned in Section 6 of the Negotiable Instrument Act. |
| A. | (A) and (D) |
| B. | (A), (B) and (D) |
| C. | (B) and (C) |
| D. | (C) and (D) |
| Answer» C. (B) and (C) | |
| 27. |
If the holder of a bill of exchange allows the drawee more than ___ hours, exclusive of public holidays, to consider whether he will accept the same, all previous parties not consenting to such allowance are thereby discharged from liability to such holder. |
| A. | 24 |
| B. | 12 |
| C. | 36 |
| D. | 48 |
| Answer» D. 48 | |
| 28. |
Which of the following is/are false about Dishonour of Cheque? A) Section 138 defines Dishonour of cheque for insufficiency, etc., of funds in the account. B) Such cheque has been presented to the bank within a period of twelve months from the date on which it is drawn or within the period of its validity, whichever is earlier C) Imprisonment for such offence may be extended for period of five year D) Section 138 apply unless – the drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice. |
| A. | (A) and (D) |
| B. | (B) and (C) |
| C. | (B),(C) and |
| Answer» B. (B) and (C) | |
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