Top 50+ Solved Negotiable Instrument Act 1881 MCQ Questions Answer

From 1 to 15 of 27

Q. In India, the law regulating the Negotiable instruments are

a. Banking Regulation Act 1949

b. Reserve Bank of India Act 1934

c. Negotiable Instruments Act 1881

d. Companies Act 1956

  • c. Negotiable Instruments Act 1881

Q. In Negotiable Instruments Act 1881, which section defines promissory note?

a. Section 1

b. Section 2

c. Section 3

d. Section 4

  • d. Section 4

Q. A drawer in the bill of exchange can also be a

a. Paymaster

b. Payee

c. Banker

d. Creditor

  • b. Payee

Q. The rate at which RBI discounts approved bill of exchange is

a. Bank rate

b. Interest rate

c. Exchange rate

d. Discount rate

  • d. Discount rate

Q. Who is primarily liable on a promissory note?

a. Holder

b. Maker

c. Drawee

d. Endorser

  • b. Maker

Q. How many parties are mainly involved in Promissory Note?

a. One

b. Five

c. Two

d. Three

  • c. Two

Q. In a bill of exchange, drawee is the person

a. who draws the bill

b. on whom the bill is drawn

c. to whom the payment of the bill is to be made

d. to whom the payment of the bill is not to be made

  • b. on whom the bill is drawn

Q. ------------ is a dead cheque

a. Post dated cheque

b. Stale cheque

c. Ante dated cheque

d. Pre dated cheque

  • b. Stale cheque

Q. Name the person to whom the amount of the cheque is payable?

a. Drawer

b. Payee

c. Drawee

d. Acceptor

  • c. Drawee

Q. Discounting of bills of exchange is

a. Clean advance

b. Secured advance

c. Neither clean advance nor secured advance

d. Unsecured advance

  • c. Neither clean advance nor secured advance

Q. Expand NEFT

a. National Electronic Fund Transfer

b. Neutral Electronic Fund Transfer

c. Nominal Electronic Fund Transfer

d. Natural Electronic Fund Transfer

  • a. National Electronic Fund Transfer

Q. A negotiable instrument drawn or make in India is called_______ instrument.

a. Inland

b. Foreign

c. Time

d. Clean

  • a. Inland

Q. The following one is a negotiable instrument, negotiable by usage or custom

a. Bill of Exchange

b. Accommodation Bill

c. Promissory Note

d. Share warrant

  • d. Share warrant

Q. The most important feature of a negotiable instrument is

a. Free transfer

b. Transfer free from defects

c. Right to sue

d. Both A & B

  • d. Both A & B

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

a. Two parallel transverse lines

b. Words "And company?

c. Words "Not negotiable"

d. Name of a banker

  • d. Name of a banker
Subscribe Now

Get All Updates & News