Quiz- 3

                                      Quiz Time

1.The term ‘holder’ refers to the person

a) Who is in possession of the instrument either legally or  illegally

b) Who has acquired the instrument for consideration

c) Who is entitled to possess the instrument in his own name and to recover the amount thereunder

d) All of these

e) None of these

2.A minor is incompetent to be a

a) Payee

b) Drawer

c) Drawee

d) Endorser without being bound by the endorsement himself

e) None of these

3.Which of the following presumption about negotiable instrument is wrong

a) It is endorsed before the date of maturity

b) It was drawn and made on the date it bears

c) It was accepted before maturity in case the acceptance was necessary

d) The holder is always holder in due course

e) None of these 

4.If no time is specified in a promissory note or bill of exchange, such instrument is considered as

a) Inchoate instrument

b) Invalid instrument

c) Payable on demand

d) Not negotiable instrument

e) None of the above

5.Which of the following instruments cannot be made payable otherwise than on demand

a) Bill of exchange

b) Cheque

c) Promissory note

d) None of these

e) None of the above

6.Having regard to Section 118 of NI Act, consideration in the case of a negotiable instrument is

a) Waived

b) To be proved by the plaintiff

c) Immaterial

d) Presumed

e) None of the above

7.Withdrawal slips used in SB accounts are

a) Negotiable instruments

b) Quasi Negotiable Instruments

c) Non-negotiable instruments

d) Special bearer instruments

e) None of these

8.Negotiable instruments are defined under

a) Section 52 of Banking Regulation Act

b) Sec 13 of NI Act

c) Sec 25 of RBI Act

d) All of these

e) None of these

9.The Negotiable Instruments Act 1881 is applicable in

a) All states comprising of erstwhile British India

b) The whole India excluding Jammu & Kashmir

c) The whole India including Jammu & Kashmir

d) The whole India excluding Sikkim & Bengal

e) None of the above

10.The Negotiable Instruments Act 1881 came into effect from

a) 1st January 1881 

b) 1st July 1881

c) 1st March 1881

d) 1st March 1882

e) None of the above

Ans:

1	2	3	4	5	6	7	8	9	10
c	c	d	c	b	d	c	b	c	d