McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 51. |
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) | |
| 52. |
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 | |
| 53. |
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) | |
| 54. |
Which bank have given the instructions to the commercial banks regarding the immediate credit of outstation cheques? |
| A. | Reserve Bank of India |
| B. | Central Bank |
| C. | World Bank |
| D. | All of the above |
| Answer» A. Reserve Bank of India | |
| 55. |
A cheque dated subsequent to the date of its issue is |
| A. | Post dated cheque |
| B. | Blank cheque |
| C. | Crossed cheque |
| D. | Account payee cheque |
| Answer» A. Post dated cheque | |
| 56. |
Dishonour of cheque by a banker without any justifiable reason is called |
| A. | Valid dishonour of cheques |
| B. | Unmindful dishonour of cheques |
| C. | Negligence dishonour of cheques |
| D. | Wrongful dishonour of cheques |
| Answer» D. Wrongful dishonour of cheques | |
| 57. |
The relationship between a banker and customer is............ |
| A. | That of a debtor and creditor |
| B. | That of a creditor and debtor |
| C. | Primarily that of a debtor and a creditor |
| D. | (a) and (b) together |
| Answer» C. Primarily that of a debtor and a creditor | |
| 58. |
In executing the standing instructions, there exists a relationship of...... |
| A. | debtor and creditor |
| B. | Trustee and Beneficiary |
| C. | Bailee and Bailor |
| D. | Agent and Principal |
| Answer» D. Agent and Principal | |
| 59. |
To constitute a person as a customer....... |
| A. | There must be frequency of transactions |
| B. | There must be a dealing of a banking nature |
| C. | There must be some sort of an account |
| D. | There must be a single transactions of any nature |
| Answer» C. There must be some sort of an account | |
| 60. |
The best procedure for opening an account in the name of a minor X and the guardian Y would be under the style............. |
| A. | 'X' Account |
| B. | 'b'-Account- Minor |
| C. | 'y' in trust for X |
| D. | 'y' account |
| Answer» C. 'y' in trust for X | |
| 61. |
The most undesirable customer is....... |
| A. | A minor |
| B. | A married Woman |
| C. | An unregistered firm |
| D. | An undischarged bankrupt |
| Answer» D. An undischarged bankrupt | |
| 62. |
The primary relationship between a banker and customer starts from the time. |
| A. | when customer visits that bank |
| B. | when customer opens account |
| C. | when customer visits that bank to made queries |
| D. | All of the above |
| Answer» B. when customer opens account | |
| 63. |
The primary relationship between banker and customer is a ------------------ relationship. |
| A. | Mutual |
| B. | Contractual |
| C. | Personal |
| D. | None of the above |
| Answer» B. Contractual | |
| 64. |
Which one of the following is the most important relationship between banker and customer. |
| A. | Debtor and Creditor |
| B. | Bailee and Bailor |
| C. | Agency and Principal |
| D. | Trustee and Beneficiary |
| Answer» A. Debtor and Creditor | |
| 65. |
When customer's account overdrawn or when customer has taken loan from banker, then the customer. |
| A. | Creditor |
| B. | Agent |
| C. | Debtor |
| D. | Bailor |
| Answer» C. Debtor | |
| 66. |
When banker received deposits from the customer, then the banker becomes -------------- of the customer. |
| A. | Debtor |
| B. | Creditor |
| C. | Bailee |
| D. | Trustee |
| Answer» C. Bailee | |
| 67. |
It is a ----------------- obligation of a banker to honour the cheques of the customer drawn against current account. |
| A. | Mutual |
| B. | Statutory |
| C. | Unstatutory |
| D. | All of the above |
| Answer» B. Statutory | |
| 68. |
Special damages refers to damages payable by a banker to his customer for the actual ------------- loss suffered by customer. |
| A. | Financial |
| B. | Special |
| C. | Unpecuniary |
| D. | Unfinancial |
| Answer» A. Financial | |
| 69. |
---------- is the right of a person to retain the property of another person in his possession untill the debt from that owner of that property is repaid. |
| A. | Lien |
| B. | Retainment |
| C. | Retrenchment |
| D. | Libel |
| Answer» A. Lien | |
| 70. |
The bank can consider ------------------ lien as their protection against loss on loan or overdraft which was given to its customers. |
| A. | Special |
| B. | Particular |
| C. | General |
| D. | Lending |
| Answer» A. Special | |
| 71. |
The right of set-off customers account can be exercised only by a----- |
| A. | Creditors |
| B. | Debtors |
| C. | Banker |
| D. | Customer |
| Answer» C. Banker | |
| 72. |
The rate of interest charged for the loan by the banker compared to overdraft and cash credit is generally. |
| A. | High |
| B. | Low |
| C. | Same |
| D. | Based on the amount |
| Answer» B. Low | |
| 73. |
The services rendered by a banker as an agent of his customers are called |
| A. | Principal services |
| B. | Agency services |
| C. | General utility services |
| D. | Social services |
| Answer» B. Agency services | |
| 74. |
The written instructions given by the customers to banker to perform the services like collection and payment of money is noted down in |
| A. | Written Instructions Book |
| B. | Standing Instructions Book |
| C. | Banking Instructions Book |
| D. | Services Instructions Book |
| Answer» B. Standing Instructions Book | |
| 75. |
A -------------- is a person who is entrusted with some property by the settler or the author of the trust for the benefit of another person called beneficiary. |
| A. | Attorney |
| B. | Executor |
| C. | Administrator |
| D. | Trustee |
| Answer» D. Trustee | |
| 76. |
Services rendered by a banker not only to his customers, but also to the general public are called as |
| A. | Principal services |
| B. | Agency services |
| C. | General utility services |
| D. | Social services |
| Answer» C. General utility services | |
| 77. |
Name the person to whom the amount of the cheque is payable? |
| A. | Drawer. |
| B. | Payee. |
| C. | Drawee. |
| D. | Acceptor |
| Answer» C. Drawee. | |
| 78. |
A banker should not refuse payment of a cheque if ________. |
| A. | The cheque is a post dated cheque. |
| B. | The cheque is drawn on another branch of the same bank. |
| C. | The cheque contains an apparent material alteration which is not properly authenticated by the drawer. |
| D. | the cheque bears more than two endorsements |
| Answer» D. the cheque bears more than two endorsements | |
| 79. |
The paying banker can get protection for a materially altered cheque provided __. |
| A. | The alteration is not apparent. |
| B. | He makes payment in due course. |
| C. | The alteration is immaterial. |
| D. | Both A and B |
| Answer» D. Both A and B | |
| 80. |
The written instructions given by the customers to banker to perform the services like collection and payment of money is noted down in |
| A. | Written Instructions Book |
| B. | Standing Instructions Book |
| C. | Banking Instructions Book |
| D. | Services Instructions Book |
| Answer» B. Standing Instructions Book | |
| 81. |
The paying banker who makes cash payment of a cross cheque at the counter shall be liable for the loss of |
| A. | Drawer of the cheque |
| B. | True owner of the cheque |
| C. | Collecting banker |
| D. | the First endorser |
| Answer» B. True owner of the cheque | |
| 82. |
The document which can be used only for making local payment is........ |
| A. | A cheque |
| B. | A bill of exchange |
| C. | A banker's cheque |
| D. | A draft |
| Answer» C. A banker's cheque | |
| 83. |
Not negotiable crossing is a warning to the........... |
| A. | Paying banker |
| B. | Collecting banker |
| C. | Holder |
| D. | (a) and (b) together |
| Answer» C. Holder | |
| 84. |
To get statutory protection, paying banker must make: |
| A. | Payment to a holder |
| B. | Payment to a holder in due course |
| C. | Payment in due course |
| D. | Payment to a drawee in case of need |
| Answer» C. Payment in due course | |
| 85. |
Which of the following Committee recommended to form a new category of Bank Called Payment Banks? |
| A. | Gadgil Committee |
| B. | M L Dhantwala Committee |
| C. | Nachiket Mor Committee |
| D. | P J Nayak Committee |
| Answer» C. Nachiket Mor Committee | |
| 86. |
Which of the following permit cheque operation? |
| A. | Savings bank accounts and fixed deposit accounts |
| B. | Current accounts and fixed deposit accounts |
| C. | Savings bank accounts and cash accounts |
| D. | Savings bank accounts and current accounts |
| Answer» D. Savings bank accounts and current accounts | |
| 87. |
What happens if a crossed cheque is presented for payment? |
| A. | It can be paid only through a banker |
| B. | It cannot be paid at all |
| C. | It can be paid across the counter in another bank |
| D. | None of the above |
| Answer» A. It can be paid only through a banker | |
| 88. |
The paying banker is protected under following SECTION for payment of cheque with forged signature of the drawer. |
| A. | Sec 89 of N.I act |
| B. | sec 85[1] of N.I act |
| C. | sec 131 of N.I act |
| D. | no protection is available |
| Answer» D. no protection is available | |
| 89. |
Which banker gets protection under section 85 of Negotiable Instrument Act, 1881? |
| A. | Collecting banker. |
| B. | Paying banker. |
| C. | Issuing banker. |
| D. | Both a and b. |
| Answer» B. Paying banker. | |
| 90. |
Protection to the Paying Bank in case of alteration in a cheque is available under. |
| A. | Sec 85 of NI act |
| B. | Sec 89 of NI act |
| C. | Sec 90 of NI act |
| D. | Sec 98 of NI act |
| Answer» B. Sec 89 of NI act | |
| 91. |
The paying banker is expected to pay the cheque to the genuine payee as per the direction of the drawer. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» A. True | |
| 92. |
The paying banker should pay the cheque when there is restriction imposed on the payment by the drawer or by the law. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
| 93. |
In case of sufficiency of funds in the account of the drawer which can be properly used to pay the cheque, the banker must pay the cheque when required to do so. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» A. True | |
| 94. |
The payment should be made when the cheques are presented for payment within a reasonable time after being drawn and during banking hours. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» A. True | |
| 95. |
Section 45 of the Negotiable instruments Act, has imposed upon the banker the obligation to honour customers cheques. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
| 96. |
How many Payment banks were approved by RBI in 2015? |
| A. | 7 |
| B. | 11 |
| C. | 41 |
| D. | 9 |
| Answer» B. 11 | |
| 97. |
How many branches of Payment banks must be in the unbanked rural area? |
| A. | 25% |
| B. | 50% |
| C. | 35% |
| D. | 75% |
| Answer» A. 25% | |
| 98. |
Which of the following activities cannot be undertaken by a Payments Bank? |
| A. | Accept deposits |
| B. | Payment of Utility Bills |
| C. | Lending Money |
| D. | None of the above |
| Answer» C. Lending Money | |
| 99. |
Under what section of the Banking Regulation Act, 1949 the payments banks are licensed? |
| A. | 22 |
| B. | 2 |
| C. | 19 |
| D. | 11 |
| Answer» A. 22 | |
| 100. |
Which is India's first Payment bank? |
| A. | PayTM Payments Bank |
| B. | JIO Payment Banks |
| C. | Airtel Payments Banks |
| D. | Fino Payments Bank |
| Answer» C. Airtel Payments Banks | |
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