Module A Unit 12 PPB Payment and Collection Of Cheques

What kind of instruments does the Negotiable Instruments Act, 1881 deal with?

• Bank notes, currency notes, and shares
• Promissory notes, bills of exchange, and cheques
• Bonds, mortgages, and leases
• Contracts, agreements, and warranties
• Debentures, dividends, and options

Which of the following is considered a valid cheque under the Negotiable Instruments Act?

• A bill of exchange drawn on a specified banker
• A bill of exchange with a future payment date
• A promissory note drawn to bearer
• A promissory note with conditional undertakings
• A bill of exchange with multiple endorsements

Which type of account can a cheque be issued for according to the text?

• Term deposit account
• Joint account
• Savings account
• Loan account
• Investment account

What is a "truncated cheque" according to the provided information?

• A cheque with irregular endorsements
• A cheque with a missing drawer's signature
• A cheque drawn on an international bank
• An electronic image of a cheque substituted for the physical cheque
• A cheque drawn on a specOed banker

What is the key characteristic of a promissory note?

• It is an order to pay a certain sum of money
• It is drawn on a specified banker
• It is an instrument in writing containing an unconditional undertaking to pay
• It is an instrument for making savings
• It is a form of contract between two parties

According to the text, who is considered the "drawer" of a bill of exchange or a cheque?

• The person directed to pay
• The person who presents the cheque
• The bank that receives the cheque
• The person who makes the bill or cheque
• The account holder who issues the bill or cheque

What is the definition of a "Holder in Due Course" mentioned in the text?

• Any person who holds a negotiable instrument
• A person who receives a cheque electronically
• A person who holds a bill of exchange
• A person who receives payment from the bank
• A person who holds the instrument for consideration and without any defect in title

What does it mean to "negotiate" a negotiable instrument?

• To transfer the instrument to another person
• To endorse the instrument multiple times
• To deposit the instrument in the bank
• To cancel the instrument
• To convert the instrument into an electronic form

When should a cheque be presented for payment according to the text?

• At any branch of the bank
• Only at the drawer's branch
• Only at the payee's branch
• Only on the date mentioned on the cheque
• On the last day of the month

What is the consequence of a cheque being dated three months prior to its presentation date?

• It cannot be paid
• It is considered a post-dated cheque
• It is considered a stale cheque
• It can only be paid in cash
• It can only be paid by the endorsee