Tag: bills of exchange and promissory note

Questions Related to bills of exchange and promissory note

For the purpose of attracting the provisions of section 138 of the Negotiable Instruments Act, 1881, a cheque has to be presented to the bank _____________________.

commercial applications banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks meaning, definition and characteristics of promissory note promissory note

  1. Within a period of six months

  2. Within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier.

  3. Within a period of 15 days from the date on which it is drawn

  4. None of the above

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Correct Option: B

A cheque is drawn only on the bank in which the drawer has his account. But the bill of exchange can be drawn on _______________ including a ___________.

commercial applications banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks meaning, definition and characteristics of promissory note promissory note

  1. any person; bank

  2. drawee; payee

  3. drawee: drawer

  4. payee: drawer

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Correct Option: A

Which one of the following is 'Not' the feature of a cheque?

commercial applications banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks meaning, definition and characteristics of promissory note promissory note

  1. It is an unconditional written order by the maker to pay.

  2. The written order is to a specified bank.

  3. It specifies the amount to be paid in figures and words.

  4. None of the above.

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Correct Option: D

Crossing of a cheque effects the ___________________.

commercial applications banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks meaning, definition and characteristics of promissory note promissory note

  1. Negotiability of the cheque

  2. Mode of payment on the cheque

  3. Both a and b

  4. Transferable but does not give a better title to the holder

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Correct Option: B

As per Negotiable Instrument Act $1881$ all of the following are types of the cheque EXCEPT:

commercial applications banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks meaning, definition and characteristics of promissory note promissory note

  1. Bearer Cheques

  2. Order Cheques

  3. Crossed Cheques

  4. Blank Cheques

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Correct Option: D