State true /false When a cheque is crossed to more than one banker, the paying banker will refuse

payment – b

If a bill is a demand or usance instrument, a cheque will be – d

What is Promissory Notes? – d/c/b(X)

What words are printed on the cheques issued to savings account customers ? – d/a

The original creditor cannot claim the amount from the debtor if the ___________has been made to the holder in due course
–b

What are the characteristics of negotiable instrument? – all

Which of the following are the three negotiable instruments? – a, c, d

Where is endorsement made? – a

A crossed cheque can only be_____________to the bank account of the _________ - a

A usance promissory note has to be stamped by affixing non-judicial stamps of requisite value, as per __________Act –
d/b/c(X)/A

What are the methods to write a usance bill – all

An order instrument can be transferred by endorsement and delivery whereasa a ________ instrument can be transferred by
mere delivery - a

It is necessary to check if the signature corresponds to the signature on record by the banker – a

If a cheque is torn in one corner and is received from another bank, the presenting bank has to – d/a

The provision of Sec 138 of the NI ACT came into effect from ___________ - a

In case of Bills of exchange, the drawer is called the________and in case of promissory notes the drawer is called
the______himself – d/a

In the promissory note, if `monthly rests` is not paid immediately,______________will be payable by the drawer – a/c/b

The date in the promissory note should be in left corner – b

A person who draws a Bill of exchange is known as the ___________ - a

Who has to give `notice of dishonour` to drawer in case of dishonour by non payment – d/a/b

If a person promises to supply goods, it is not a promissory note – d/a

Mr.Arunkumar gives a cheque dated 1st Jan 2006,but other party presented only after 12 months,is it valid cheque – a

Bearer cheques are payable to the person who is in ____________ of the instrument – d

If the bills of exchange is accepted it has to be presented to________ on due date for the payment – c/b

If the bill is on due date the payee of a usance bill will need a confirmation from the _________ - c

In the bills of exchange, person liable to pay the money is called as the – b

The promissor is maker and the promisee is called as payee.The former is________while the latter is the ___________ - c

Which type of cheques do not grant an authority to debit the account of the customer till the date arrives? – a

In case of Bills of exchange,the due date is calculated after adding______________of __days to the usance period – c/b
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 – d/b

To confirm the date of the cheque presented for payment,the bank has to check whether it is – c

The promise to pay whenever payee demands payment, is called – d/b

Which of the features are not considered as condition? – all

The banker`s duty to honour cheques issued by the customer is limited by the following conditions - a

Who gets `discharged` from his obligations on payment to the holder in due course? – c/b

Who issues printed chequebooks for use by its customers? – b

The usual form of signature in case of limited companies is as follows – a

If a cheque is dishonoured, ___________ action can be taken against the drawer – b

Who signs in the cheque? – c

What are the words, `for value received` in a promissory note and bill of exchange considered as – d/a

State whether the statement is true or false A conditional promissory note or bill of exchange or cheque is a negotiable
instrument – a

If a cheque is crossed and restricted, its mode of payment is - a(X)/B

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 – c/a

The elaborate enquiries has to be made by the bank or debtor before making the payment of the cheque – b

What is the transferee or the `holder` of the instrument called - a

Proving lack of consideration is on the drawer which can prompt the lender to take _________ cheques from their borrowers
–a

Stale cheque can be paid if the cheque is dated more than 6 months – b

The payee can treat the bill as ___________ by non-acceptance, if the bill is not accepted within 48 hours. – d/c(X)/B

If the amount stated in the cheque is different in words and figures, the amount in words cannot be paid – a

Mr.Hari issues a cheque to Mr.Ram and it is dishonoured, hence here Ram can file a ________against Hari - a

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 – b/c/a

What is not required for transfering the bearer instrument? – d(X)/B

A bill of exchange contains an – c/d/a

Who gets a better title than the transferor – d/b/a

______ is necessary when there is contract or agreement between two persons. – b

The printed words on the cheques ,the words `or order` or `or bearer` are printed by the ________ - b(X)/A

The debtor is duty bound to make payment to the holder in due course who `presents` the instrument to him for payment – a

Cheque containing impossible dates becomes payable on the last day ____________ - b
To whom the promissory note payment is to be made? – d/c/a

What is post dated cheque? – c/a

What are the conditions which attract the penalty? – b, c, d

________ is defined as a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on
demand? – b

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)? – d/c

What is forgery of the cheque? – a

If the cheque is mutilated or torn by accident, the drawer has to confirm in ________________that the cheque can be paid –
b, c

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`. – a

Who signs the promissory notes? – c

In case of Bills of exchange,a usance bill has to be stamped with __________________ as per stamp act. – c

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. – a

A payee should not be a certain person True or false – a

What is the penalty given to drawer in as per Section 138, when the cheque is dishonoured? – d/b/a

If the account is operated by an authorized agent then cheque should contain – d/b/c(X)/A

If the space is insufficient for endorsement, it may be done on a paper attached to the cheques. Such an attachment is called
an __________- - b

The cheques executed by a partner is always signed on behalf of the firm so as to bind the firm – c/a

What is usance promissory note? – d

The procedure of re-presenting the bill to the drawee through a lawyer and getting the fact of dishonour confirmed is called –
c/d/b

In which year was the NI ACT passed? – c/a/

If accounts are jointly operated,the alterations should be signed by all the authorised signatories as per the operating
instructions – a

The cheque number and code number of the bank and branch are printed in __________________________to facilitate
processing of cheques through automated reader sorter machines. – a/d/c(X)/B

Current account holder`s cheques are printed with the word____________ - a/d/b

A holder of a cheque putting a date on an undated cheque is termed as alteration of cheque – a

An order instrument can be transferred by endorsement and delivery whereasa a ________ instrument can be transferred by
mere delivery – a

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 _________. – a

Mr.Rahul given a cheque dated 2nd March 2007, if presented for payment on 29th Sep 2007, then it is – a
Mr.Prakash is holding the bearer instrument, can he claim the amount from the drawee. – d/b/c(X)/A

A cheque is a – d/a/b

______________is checked against the numbers of the cheques issued to the customer at the time of payment – a(X)/B

If a cheque is crossed, the paying banker cannot pay cash across the counter – b/ /

Without the signature ,the cheque is – a

What is cheque? – d/c

The drawer is the person who makes and signs the promissory note – a

The amounts of cheque in words and figures should tally – a

What has all the qualities of a negotiable instrument which is not listed in Negotiable Instrument Act? – c

Who issues the currency notes? – a

Who should date the Cheque? – d/a

A usance bill has to be `accepted` by the drawee or debtor before it becomes _________ - a/c

A payees name has to be necessarily specified in cheques – a

A negotiable instrument must be – d/c(X)/B

The lenders take post dated cheques in repayment of the loan because of – d/a/b

The promise to pay should be unconditional – a

The undated cheque is not valid but the bank can write the date on the cheque – b

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 – a/b(X) /C

The requirement of endorsement should be – c/a/d

Partners of a firm are called - c

If the endorser merely signs his name without specifying the name of the person to whom payment must be made, it is called
–b

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 - a

If a cheque is crossed, the paying banker cannot pay cash across the counter – b/a

If both order or bearer is written on an instrument, it will be treated as – a

In case of Death, insolvency or insanity of the drawer before date of cheque,postdated cheque should not be paid - a

Who can `transfer` an order instrument by `endorsing` it? – d/b(X)/A

If the drawees name is not mentioned in cheque it is - b

When a cheque being presented for payment, the following needs to be checked to confirm that the cheque is in order – all

The drawee of a cheque is__________- d/c(X)/B

Banks make physical presentation of bills – a/b