MULTIPLE CHOICE QUESTIONS

1. The relationship between a banker and customer is............

That of a debtor and creditor;That of a creditor and debtor ;Primarily that of a debtor and a
creditor;(a) and (b) together

2. In executing the standing instructions, there exists a relationship of........

debtor and creditor;Trustee and Beneficiary;Bailee and Bailor;Agent and

Principal

3. To constitute a person as a customer.......

There must be frequency of transactions;There must be a dealing of a banking

nature ; There must be some sort of an account; There must be a single transactions of
any nature
 4. The banker has a statutory obligation to.........
Honour customers' cheque;Exercise lien;Maintain secrecy of his customers' accounts;Honour customers' bill

5. The best procedure for opening an account in the name of a minor X and the
guardian Y would be under the style.............
'X' Account;Account- Minor ;'y' in trust for X;'y' account

6. The balance of a joint A/c in the name of X,Y,Z Should be paid on the death
of X........
To the legal representative of x;To Y and Z;To Y or Z ; TO the legal representative of
X,Y and Z

7. The most undesirable customer is.......

A minor;A married Woman;An unregistered firm ; An undischarged

bankrupt
8. The document drawn by a debtor on the creditor agreeing to pay a certain
sum is called............
Cheque ; Promissory Note;Bill of Exchange;Draft

9. The most important feature of a negotiable instrument is......

Free transfer;Transfer free from defects;Right to sue; (a) and (b) together

10. In the case of a negotiable instrument, The following person generally gets a
good title.....
Finder of the lost instrument;Holder of a stolen instrument; Holder in due course
; Holder of a forged instrument
11. The reasonable period allowed in Pakistan for the presentation of a cheque
is.............
1 Year ; 6 Months;9 months;Depending upon banking custom

12. A cheque bearing a date 31st April,1992 is presented for payment on 5th
May 1992, As per the practice............
The cheque should be dishonoured with the remark 'non-exixting date';The
cheque is returned with the remark 'irregularly drawn';The cheque is
dishonoured with the remark 'not valid'; The cheque can be honoured

13. The offence under Sec.138 is deemed to have been committed, if t5he
drawer fails to make payment within ...........period from the date of the rece3ipt of
notice.
1 Month;40 days; 15 days; 16 days
 14. Not negotiable crossing is a warning to the...........

Paying banker;Collecting banker; Holder; (a) and (b) together

15. A Not negotiable crossing restricts............ of the cheque

Transferability; Negotiability;Neither transferability nor Negotiability;Both

transferability and Negotiability

16. The following one is absolutely essential for a special crossing.

Two parallel transverse lines;Words 'And Company';Words 'Not Negotiable';

Name of a banker

17. The safest from of crossing is

General crossing;Special crossing;Double crossing; A/c Payee crossing

18. A cheque which is not crossed is called:

Uncrossed cheque; open cheque;order cheque;Bearer Cheque

19. Negotiability gives to the transferee......... title of the transferor.

The same title;no title;no better title; better title

20. Endorsement signifies that the...........

Endorser has got a good title;endorser's signature is genuine;Previous

endorsements are genuine; All of the above

21. One of the following endorsements is not a valid one.....

Partial endorsement;restrictive endorsement;Facultative endorsement;Conditional endorsement

22. When the amount stated in words and figures differs, the banker.........
Can honour the amount in figur
 Can honour the amount in figure; Can honour the amount in words;Can honour the smaller amount;Can
dishonour it

23. To get statutory protection, paying banker must make:

Payment to a holder;Payment to a holder in due course ;Payment in due

course;Payment to a drawee in case of need

24. A collecting banker is given protection only when he collects

A crossed cheque;An order cheque;An Bearer Cheque;An mutilated cheque

25. A Collecting banker is given the statutory protection only when he acts as...
A banker;A holder for value;A holder in due course ; An agent

26. A pledge can be made in respect of....

Shares;Building;Book debts
27. How many parties are involved in a Cheque?
 Two;Three;Four;Five

28. Among the following, who has defined banker as “A banker is a dealer in

capital, or, more properly, a dealer in money. He is an intermediate party between
the borrower and the lender. He borrows from one party and lends to another”?
 
       J.W. Gilbert ; Dr. Herbert L. Hart;Sir John Paged ;Halsbury’s Laws of
England
29. All of the following are examples of Negotiable Instruments, under the
Negotiable Instrument Act, 1881, EXCEPT:
 Promissory note;Bill of exchange;Cheque;Bearer debentures

30. An endorsement is said to be Restrictive endorsement, if it satisfies which of the

following conditions?
If the endorser signs his name only;If the endorser adds a direction to pay the
amount mentioned in the instrument to, or to the order of, a specified person;If
the endorser restricts or excludes the right to further negotiate the
instrument;If the endorser purports to transfer to the endorsee only a part of
the amount payable
Point out the kinds of crossing?

⮚ General crossing
⮚ Special crossing
1. Explain the general relationship of banker and a customer?