.

Which one is not a negotiable instrument covered under the Negotiable Instruments
Act 1881?*
1 point

Cheque
Hundi
Bill of exchange
Promissory Note

2. Which of the following is not a method of discharging a negotiable instrument?*

1 point

Payment in due course

Non-Presentment for acceptance of a bill of exchange
Material Alteration
Endorsement

3. Which of the following method of negotiation is not covered under the negotiable
instruments act?*
1 point

Assignment
Endorsement
Negotiation Back
Delivery

4. What are the differences between Promissory Note and Bill of Exchange (Select
all correct answers)*
1 point

Promissory Note has a minimum of 2 parties and Bill of Exchange has a minimum of 3
Promissory note is a Promise to pay and the Bill of exchange is an Order to pay.
Promissory note cannot be drawn without the name of a payee, Bill of Exchange can have
the drawer and the payee as the same individual
Promissory notes are illegal, Bill of Exchange are legal instruments

5. Crossing is mandatory for cheques*

1 point

True
False

6. Drawee of a .............. must always be a banker*

1 point

Cheque
Hundi
Bill of Exchange
Promissory Note

7. Drawee in case of need gets a better title than the holder of an instrument only if:*
1 point

the instrument is received in good faith and for valuable consideration

the instrument is not negotiable
the instrument is not endorsed
the instrument is not disputed by the drawer

8. A promissory note is stamped and signed with the words, "I promise to pay a sum
of Rs. 5,000 only with interest thereon." Is this note valid?*
1 point

Yes, because the repo rate will be used to arrive at the interest amount
No, because the amount is not certain
Valid only upto Rs. 5,000/-
Not valid only if there is a dispute regarding the interest rate.

9. Select the parties who are competent to endorse a negotiable instrument*

1 point

Minor
Undischarged Insolvent
A person of integrity above the age of 18
A person of unsound mind
A business owner
A professional

10. A notice of dishonour given by a stranger is valid*

1 point

True
False