EXAMPLE:

TYPES OF CROSSING
SCRUTINY OF CHEQUE
Mutilation
Crossing
Date
Payee
Amount in words and Figure should Tally
Alteration in cheque
Available Balance
Signature of Customer
AMOUNT
QUESTIONS:
1. If the space is insufficient for endorsement, it may be done on a paper attached to the cheques.
Such an attachment is called an __________-
*Allonge
2. The elaborate enquiries has to be made by the bank or debtor before making the payment of the
cheque
*Necessary
3. What words are printed on the cheques issued to savings account customers ?
*Or bearer`
4. Partners of a firm are called
*Agents of the firm
5. In case of legal entities, the cheques should be signed for and on behalf of the entity. This is
done by putting a ____________carrying the name of the entity and the position of the
 signatory
*Rubber stamp
6. If a cheque is crossed and restricted, its mode of payment is
*Not treated as a condition.
7. Mr.Hari issues a cheque to Mr.Ram and it is dishonoured, hence here Ram can file a
________against Har
*Suit
8. The promise to pay should be unconditional
*Yes
9. Who can `transfer` an order instrument by `endorsing` it?
*Payee
10. What is the penalty given to drawer in as per Section 138, when the cheque is dishonoured?
*The drawer may be imprisoned for up to one year or asked to pay a fine of up to twice the
amount of the cheque or both
11. Which of the following are the three negotiable instruments?
*Promissory Notes*Cheques*Bills of Exchange
12. The procedure of re-presenting the bill to the drawee through a lawyer and getting the fact of
dishonour confirmed is called
*Protest
13. Who signs in the cheque?
*Drawer
14. The usual form of signature in case of limited companies is as follows
*For and on behalf of Company`s name (signed) Director
15. What is post dated cheque?
*A cheque that bears a date later than the date of presentment for payment
16. If both order or bearer is written on an instrument, it will be treated as
*A bearer instrument
17. ______ is necessary when there is contract or agreement between two persons.
*Consideration
18. If a bearer cheque is missing,and the person who found out in favour of someone else, delivers
it to a shop keeper, in payment of some purchase, the shop keeper becomes a holder in due
course in case he did not know that the cheque had been missing
*The debtor is duty bound to make payment to the holder in due course who `presents` the
instrument to him for payment
19. Which of the features are not considered as condition?
*Making the amount payable after a period of time, in a usance instrument
20. In case of Bills of exchange, the drawer is called the________and in case of promissory notes
the drawer is called the______himself
*Creditor and debtor
21. In which year was the NI ACT passed?
*1881
22. A cheque is a
*Demand bills of exchange
23. What is cheque?
*A cheque is an instruction from the account holder to his bank to pay a certain sum of money
to the person named in the cheque
24. The promise to pay whenever payee demands payment, is called
*Demand promissory note
25. A holder of a cheque putting a date on an undated cheque is termed as alteration of cheque
 *No
26. If a cheque is torn in one corner and is received from another bank, the presenting bank has to
*put a stamp reading `Mutilation Guaranteed, Please Pay` and signed the guarantee, the cheque
can be paid
27. The lenders take post dated cheques in repayment of the loan because of
*Criminal liability for non payment of cheques
28. The provision of Sec 138 of the NI ACT came into effect from ___________
*1.4.1989
29. A usance promissory note has to be stamped by affixing non-judicial stamps of requisite value,
as per __________Act
*Stamp
30. In case of Death, insolvency or insanity of the drawer before date of cheque,postdated cheque
should not be paid
*true
31. Who has to give `notice of dishonour` to drawer in case of dishonour by non payment
*Drawee
32. If the endorser merely signs his name without specifying the name of the person to whom
payment must be made, it is called
*Blank endorsement
33. The printed words on the cheques ,the words `or order` or `or bearer` are printed by the
________
*Bank
34. In case of Bills of exchange,a usance bill has to be stamped with __________________ as per
stamp act.
*Non Judicial stamps
35. If a person promises to supply goods, it is not a promissory note
*True,it should be to pay money to another person not goods
36. What is Promissory Notes?
*An instrument in writing containing an unconditional promise signed by the maker to pay a
certain sum of money to a certain person or to the bearer of the instrument
37. The drawer is the person who makes and signs the promissory note
*true option
38. A usance bill has to be `accepted` by the drawee or debtor before it becomes _________
*Valid
39. In case of Bills of exchange,the due date is calculated after adding______________of __days to
the usance period
*Grace period ,3
40. What are the words, `for value received` in a promissory note and bill of exchange considered
as
*Affirmation by the drawer
41. If the signature is forged, then no statutory protection is available to the bank for payment in
due course. This is accordance with _______ (section of ACT)?
*Sec 85
42. Who signs the promissory notes?
*Signed by the promissory or the person who makes promise
43. If the account is operated by an authorized agent then cheque should contain
*a `per pro` signature
44. What are the methods to write a usance bill
*Three months from acceptance pay *Three months from date, pay*On 31.12.200X pay
45. If a bill is a demand or usance instrument, a cheque will be
*Demand instrument
46. Banks make physical presentation of bills
*False
47. A negotiable instrument must be
*Unconditional
48. The debtor is duty bound to make payment to the holder in due course who `presents` the
instrument to him for payment
*true
49. Mr.Rahul given a cheque dated 2nd March 2007, if presented for payment on 29th Sep 2007,
then it is
*Not a postdated cheque
*It is not valid postdated cheque
50. The requirement of endorsement should be
*Unbroken and regular
51. If the bill is on due date the payee of a usance bill will need a confirmation from the _________
*Debtor
52. ______________is checked against the numbers of the cheques issued to the customer at the
time of payment,
*The serial number of the cheque
53. Who gets `discharged` from his obligations on payment to the holder in due course?
*The Debtor
54. In the bills of exchange, person liable to pay the money is called as the
*Drawee
55. Stale cheque can be paid if the cheque is dated more than 6 months
*No
56. The original creditor cannot claim the amount from the debtor if the ___________has been
made to the holder in due course
*Payment
57. A bill of exchange contains an
*Message
58. Where is endorsement made?
*Endorsement is made on the back of instrument
59. When a cheque is made payable to Mr.X or bearer, the payee can transfer the instrument to
another person by merely handing it over to him or mere `delivery`.
*true
60. The promissor is maker and the promisee is called as payee.The former is________while the
latter is the ___________
*Debtor and creditor
61. What is not required for transfering the bearer instrument?
*Endorsement
62. Who gets a better title than the transferor
*A holder in due course
63. A person who becomes a holder of a negotiable instrument, for valuable consideration and good
faith and not knowing that the transferor did not have good title to it; is called _________.
*`Holder in due course`
64. Without the signature ,the cheque is
*Not Valid
65. ________ is defined as a bill of exchange drawn on a specified banker and not expressed to be
 payable otherwise than on demand?
*A cheque
66. What are the conditions which attract the penalty?
*The dishonor of the cheque should be on account of insufficiency of funds*courts have
imposed penalty for return of cheques due to stop payment instructions also on being convinced
that the stop payment instructions were given deliberately to avoid payment
67. Bearer cheques are payable to the person who is in ____________ of the instrument
*Only a
68. State true /false When a cheque is crossed to more than one banker, the paying banker will
refuse payment
*true
69. What has all the qualities of a negotiable instrument which is not listed in Negotiable
Instrument Act?
*A currency note
70. What is forgery of the cheque?
*If any person other than the customer himself, without his specific authority to sign, signs by
copying customer`s signature with the intention to prejudice that customer
71. The undated cheque is not valid but the bank can write the date on the cheque
*No
72. What is the transferee or the `holder` of the instrument called
*Transferee of the instrument
73. When a cheque being presented for payment, the following needs to be checked to confirm that
the cheque is in order
*Date*Payee*Amount in Words and Figures Should Tally*Alteration of the Cheque and
Available Balance*Signature of the Customer and Payment at the Branch Where the Account is
Held and Anywhere Banking*Bearer / Order cheques and endorsements
74. To whom the promissory note payment is to be made?
*Payee
75. The payee of the order can make the instrument payable to another person by writing on the
back of the cheque `Pay Mr.x________ or order` and putting his signature below it. Such a
notation on the back of the cheque is called an
*Endorsement
76. The cheques executed by a partner is always signed on behalf of the firm so as to bind the firm
*Always
77. The date in the promissory note should be in left corner
*False
78. The amounts of cheque in words and figures should tally
*true
79. To confirm the date of the cheque presented for payment,the bank has to check whether it is
*Both a and b
80. If a cheque is crossed, the paying banker cannot pay cash across the counter
*true
81. If the cheque is mutilated or torn by accident, the drawer has to confirm in
________________that the cheque can be paid
*Only B
82. Mr.Prakash is holding the bearer instrument, can he claim the amount from the drawee
*Any one holding the bearer instrument, can claim the amount from the drawee.
83. A payees name has to be necessarily specified in cheques
*Yes
84. State whether the statement is true or false A conditional promissory note or bill of exchange or
cheque is a negotiable instrument
*False
85. A person who draws a Bill of exchange is known as the ___________
*Drawer
86. An order instrument can be transferred by endorsement and delivery whereasa a ________
instrument can be transferred by mere delivery
*Bearer instrument
87. A crossed cheque can only be_____________to the bank account of the _________
*Credited ,payee
88. Transferring of ownership, free from defect, through endorsement and delivery in the case of
an order instrument and mere delivery in the case of a bearer instrument is called
*Negotiability
89. Proving lack of consideration is on the drawer which can prompt the lender to take _________
cheques from their borrowers
*Post dated
90. What is usance promissory note?
*Both b and c
91. If the bills of exchange is accepted it has to be presented to________ on due date for the
payment
*Drawer
92. An instrument in writing, containing an unconditional order, signed by the maker, directing a
certain person to pay a certain sum of money only to, or to the order of, a certain person or to
the bearer of the instrument is called
*All of the above
93. The drawee of a cheque is__________
*Payee
94. If the amount stated in the cheque is different in words and figures, the amount in words cannot
be paid
*False
95. Mr.Arunkumar gives a cheque dated 1st Jan 2006,but other party presented only after 12
months,is it valid cheque
*No,It is stale cheque
96. A cheque which been circulating for more than six months from the date on the cheque is
considered _____________and cannot be paid. It can be paid only after it is revalidated by the
drawer.
*Stale
97. Who should date the Cheque?
*Drawer
98. Which type of cheques do not grant an authority to debit the account of the customer till the
date arrives?
*Date without mentioned
99. A payee should not be a certain person True or false
*false
100. If accounts are jointly operated,the alterations should be signed by all the authorised
signatories as per the operating instructions
*true
101. In the promissory note, if `monthly rests` is not paid immediately,______________will
be payable by the drawer*Floating interest