Multiple choice

Which of the following is not negotiable instrument?

  1. Bill of exchange

  2. Bearer cheque

  3. Promissory note

  4. Crossed cheque

  5. Both 3 and 4
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Negotiable instrument is an unconditional order to pay a certain sum of money to the payee by the payer at a specified future date, which is transferable. Bill of exchange, bearer cheque, demand draft and promissory note are transferable and unconditional orders. Correct option is 4 (crossed cheque, i.e., account payee cheque).

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