Top 150+ Solved Banking and Finance 3 MCQ Questions Answer
Q. Which of the following is/are true about bill of exchange? A) A bill of exchange requires in its inception two parties. B) A bill of exchange or “draft” is a written order by the drawer to the drawee to pay money to the payee. C) Bills of exchange are used primarily in international trade, and are written orders by one person to his bank to pay the bearer a specific sum on a specific date. D) Definition of ‘Bill of Exchange’ is mentioned in Section 6 of the Negotiable Instrument Act.
a. (A) and (D)
b. (A), (B) and (D)
c. (B) and (C)
d. (C) and (D)
Q. Name the person to whom the amount of the cheque is payable?
a. Drawer.
b. Payee.
c. Drawee.
d. Acceptor
Q. A banker should not refuse payment of a cheque if ________.
a. The cheque is a post dated cheque.
b. The cheque is drawn on another branch of the same bank.
c. The cheque contains an apparent material alteration which is not properly authenticated by the drawer.
d. the cheque bears more than two endorsements
Q. The paying banker can get protection for a materially altered cheque provided __.
a. The alteration is not apparent.
b. He makes payment in due course.
c. The alteration is immaterial.
d. Both A and B
Q. The written instructions given by the customers to banker to perform the services like collection and payment of money is noted down in
a. Written Instructions Book
b. Standing Instructions Book
c. Banking Instructions Book
d. Services Instructions Book
Q. The paying banker who makes cash payment of a cross cheque at the counter shall be liable for the lossof
a. Drawer of the cheque
b. True owner of the cheque
c. Collecting banker
d. the First endorser
Q. The document which can be used only for making local payment is........
a. A cheque
b. A bill of exchange
c. A banker's cheque
d. A draft
Q. Not negotiable crossing is a warning to the...........
a. Paying banker
b. Collecting banker
c. Holder
d. (a) and (b) together
Q. To get statutory protection, paying banker must make:
a. Payment to a holder
b. Payment to a holder in due course
c. Payment in due course
d. Payment to a drawee in case of need
Q. Which of the following Committee recommended to form a new category of Bank Called PaymentBanks?
a. Gadgil Committee
b. M L Dhantwala Committee
c. Nachiket Mor Committee
d. P J Nayak Committee
Q. Which of the following permit cheque operation?
a. Savings bank accounts and fixed deposit accounts
b. Current accounts and fixed deposit accounts
c. Savings bank accounts and cash accounts
d. Savings bank accounts and current accounts
Q. What happens if a crossed cheque is presented for payment?
a. It can be paid only through a banker
b. It cannot be paid at all
c. It can be paid across the counter in another bank
d. None of the above