Quiz-6

Quiz-6

1.Which of the following are the requisite of a promissory note

a) It must be in writing and contain an unconditional undertaking to pay

b) It must be signed by the maker and the parties thereto must be designated with reasonable certainty

c) The medium of payment must be expressed in money only and the sum payable is to be certain

d) All of these

e) None of these

2.The term ‘drawee in case of need’ refers to

a) The person from whom money may be demanded in case of need

b) Indigenous bankers who finance traders in case of need

c) The person to whom a bill has got to be presented for payment when it is dishonoured by the drawee

d) All of these

e) None of these 

3.In order to operate as a valid bill of exchange, the instrument must satisfy the following conditions

a) It must be in writing and signed by the drawer

b) The drawee, the drawer and the money ordered to be paid must be certain

c) The payee must be a certain person or bearer of the instrument d) All of these

e) None of these

4.A Bill of exchange is defined by

a) Sec 12 of B R Act 

b) Sec 10 of NI Act

c) Sec 5 of NI Act

d) Sec 13 of NI Act

e) None of these

5.Mr Ram is the holder of a cheque payable to ‘Ram or order’. He simply transfers the cheque to ‘Ashok’ without endorsing it. In this case Mr.Ashok would be

a) Only assignee of a chose in action and takes bill subject to all defects

b) Holder in due course

c) Holder for value

d) Illegal Holder

e) None of these 

6.You have allowed overdraft against a cheque sent in clearing. In the event of dishonour of the cheque

a) Bank will not be a holder in due course since full consideration was not parted with while allowing overdraft against the dishonoured cheque

b) Bank will be a holder in due course if it took the same under the circumstances mentioned in section 9 of NI Act

c) Bank may proceed only against its customer who was allowed the overdraft but not against the drawer/endorser

d) All of these

e) None of these

7.A person cannot sue on the basis of a negotiable instrument

a) Unless he is named therein as the payee

b) Unless he becomes entitled to it as endorsee

c) Unless he becomes bearer of an instrument payable to bearer d) All of these

e) None of these

8.A person cannot claim to be a holder in due course but may at most be a holder if he takes

a) An instrument which is irregular on the face of it

b) An instrument which is overdue

c) An inchoate instrument

d) All of these

e) None of these

9.In case of death of a customer banking accounts of that customer are stopped only when a banker receives

a) An order issued by a court of competent jurisdiction

b) On production of the death certificate issued by the corporation or local bodies

c) A legal notice from the survivors of the deceased

d) Actual or constructive notice of a customer’s death 

e) None of these

10.Which of the following are the rights of the holder

a) A holder can convert the blank endorsement to an endorsement in full

b) A holder can obtain a duplicate of the lost bill giving an indemnity if so required by the drawer 

c) A holder has the right to sue in his own name on the instrument

d) All of these

e) None of these

Ans:

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