Ni Act MCQ

Negotiable Instrument Act 1881+
1) It is a------------------obligation of a banker to honour the cheques of the customer drawn against

Current accounts
a) Mutual
b) Statutory
c) Unstatutory
d) All of the above
2) 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 of India
c) World Bank
d) All of the above
3) 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
4) In Negotiable Instruments Act 1881, which section defines promissory note?

a) Section 1
b) Section 2
c) Section 3
d) Section 4
5) 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
6) A drawer in the bill of exchange can also be a

a) Paymaster
b) Payee
c) Banker
d) Creditor
7) The rate at which RBI discounts approved bill of exchange is
a) Bank rate
b) Interest rate
c) Exchange rate
d) Discount rate
8) Who is primarily liable on a promissory note?

a) Holder
b) Maker
c) Drawee
d) Endorser
9) How many parties are mainly involved in Promissory Note?

a) One
b) Five
c) Two
d) Three
10) 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
11)is a dead cheque

a) Post dated cheque
b) Stale cheque
c) Ante dated cheque
d) Pre dated cheque
12) Name the person to whom the amount of the cheque is payable?
a) Drawer
b) Payee
c) Drawee
d) Acceptor
13) Discounting of bills of exchange is
a) Clean advance
b) Secured advance
c) Neither clean advance nor secured advance
d) Unsecured advance
14) Expand NEFT

a) National Electronic Fund Transfer
b) Neutral Electronic Fund Transfer
c) Nominal Electronic Fund Transfer
d) Natural Electronic Fund Transfer
15) A negotiable instrument drawn or make in India is called_ instrument.

a) Inland
b) Foreign
c) Time
d) Clean
16) 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
17) 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
18) 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
19) Cheque is payable on
a) Demand
b) Usage
c) Fixed future date
d) After sight
20) 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
21) Section 6 of the Negotiable Instruments Act defines _ .

a) Cheque
b) Bill of Exchange
c) Promissory Notes
d) Dishonour by non-payment
e) Dishonour by non-acceptance
22) 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
e) Minor and the Drawee
23) 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
e) Section 94
24) 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
25) 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
e) All of the Instruments are Negotiable Instruments
26) 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 (D)
d) (A), (C) and (D)
e) All of the above
27) 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) 33%
e) 20%
28 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)
e) All of the Above
29. 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
e) 60
30. 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 six 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 after nonpayment and 2 years
of imprisonment
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 (D)
d) Only (D)
e) Only (C)

Ni Act MCQ

Uploaded by

Copyright:

Available Formats

Ni Act MCQ

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ni Act MCQ

Uploaded by

Copyright:

Available Formats

Negotiable Instrument Act 1881+

1) It is a------------------obligation of a banker to honour the cheques of the customer drawn against

3) In India, the law regulating the Negotiable instruments are

4) In Negotiable Instruments Act 1881, which section defines promissory note?

5) A cheque dated subsequent to the date of its issue is

6) A drawer in the bill of exchange can also be a

8) Who is primarily liable on a promissory note?

9) How many parties are mainly involved in Promissory Note?

10) In a bill of exchange, drawee is the person

11)is a dead cheque

14) Expand NEFT

15) A negotiable instrument drawn or make in India is called_ instrument.

16) The following one is a negotiable instrument, negotiable by usage or custom

17) The most important feature of a negotiable instrument is

18) The following one is absolutely essential for a special crossing.

21) Section 6 of the Negotiable Instruments Act defines _ .

23) Dishonour of Negotiable Instrument by Non Payment is covered under section in

a) (A), (B) and (C)

a) (A) and (D)

30. Which of the following is/are false about Dishonour of Cheque?

You might also like