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. |
When banker received deposits from the customer, then the banker becomes -------------- of the customer. |
| A. | Debtor |
| B. | Creditor |
| C. | Bailee |
| D. | Trustee |
| Answer» A. Debtor | |
| 2. |
If cheque is crossed an account payee, this is direction of, ------------- to---------------. |
| A. | Payee, paying banker |
| B. | Payee, collecting bank |
| C. | Drawer, paying bank |
| D. | Drawer, collecting bank |
| Answer» D. Drawer, collecting bank | |
| 3. |
In case of collection of cheques and bills, the relationship of the banker with the customer is that of |
| A. | Bank as agent and customer trustee |
| B. | Bank as trustee and customer debtor |
| C. | Banker as debtor and customer bailee |
| D. | Banker as bailor and customer bailee |
| Answer» A. Bank as agent and customer trustee | |
| 4. |
In case collection of a bank draft the collecting banker is protected against conversion under _____ section of Negotiable Instruments Act 1881. |
| A. | 131 |
| B. | 131 A |
| C. | 85 |
| D. | 128 |
| Answer» B. 131 A | |
| 5. |
A cheque has been deposited by a customer with his bank for collection. The bank allows overdraft against the security thereof. The bank becomes |
| A. | Holder of the cheque |
| B. | Holder in due course |
| C. | Holder for value |
| D. | Drawer of the cheque |
| Answer» C. Holder for value | |
| 6. |
Who can file a criminal case against the drawer of a dishonored cheque? |
| A. | The payee |
| B. | The holder in due course |
| C. | Both of the above |
| D. | The paying banker |
| Answer» C. Both of the above | |
| 7. |
The best answer for returning a cheque for want of funds in the account is......... |
| A. | Refer to drawer |
| B. | Not provided for |
| C. | Exceeds arrangement |
| D. | Not sufficient funds |
| Answer» D. Not sufficient funds | |
| 8. |
Bankers undertake the duty of collection of cheques and bills because...... |
| A. | Sec.131 of the NI Act compels them to do so |
| B. | Sec.85 of the NI Act compels them to do so |
| C. | They want to do it as a service |
| D. | Collection is a must for a crossed cheque |
| Answer» C. They want to do it as a service | |
| 9. |
A collecting banker is given protection only when he collects |
| A. | A crossed cheque |
| B. | An order cheque |
| C. | An Bearer Cheque |
| D. | An mutilated cheque |
| Answer» A. A crossed cheque | |
| 10. |
Collecting a cheque payable to the firm to the private account of a partner without enquiry constitutes....... |
| A. | gross negligence |
| B. | Negligence under remote grounds |
| C. | Negligence connected with immediate collection of a cheque |
| D. | Contributory Negligence |
| Answer» C. Negligence connected with immediate collection of a cheque | |
| 11. |
A Collecting banker is given the statutory protection only when he acts as... |
| A. | A banker |
| B. | A holder for value |
| C. | A holder in due course |
| D. | An agent |
| Answer» D. An agent | |
| 12. |
To get protection under Sec 131 of NI Act collecting banker should collect the cheque |
| A. | crossed generally |
| B. | crossed specially |
| C. | 1 or 2 |
| D. | crossed a/c payee |
| Answer» C. 1 or 2 | |
| 13. |
The endorsement on the cheque is fictitious and the collecting banker failed to check it the cheque is paid by the paying banker |
| A. | collecting banker is not protected |
| B. | paying banker is protected |
| C. | collecting banker & paying banker are protected |
| D. | both are not protected |
| Answer» B. paying banker is protected | |
| 14. |
In case of wrongful dishonour of a cheque by the banker |
| A. | the holder can claim from drawee bank |
| B. | the holder can claim from collecting bank |
| C. | the remedy for holder is against drawer |
| D. | holder can claim from drawee bank, collecting bank, drawer |
| Answer» C. the remedy for holder is against drawer | |
| 15. |
When the cheque is dishonored, the collecting banker is not bound to give notice of the same to his customer within a reasonable time. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
| 16. |
The collecting banker is bound to show due care and carefulness in the collection of cheques presented to him. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» A. True | |
| 17. |
In case a collecting banker has realized the cheque, he should pay the interest to the customer as per his (customer’s) direction. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» A. True | |
| 18. |
Holder is an individual who has lawfully received possession of a Commercial Paper, such as a cheque and who is entitled for payment on such instrument. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» A. True | |
| 19. |
There is legal obligation for a banker to collect the bills of exchange for its customer. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
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