Chap#10, Bill of Exchange

In which negotiable instrument are grace days provided?

• Cheque

• Bill of exchange

• Promissory note

• None of these

Which of the following instruments can be discounted from a bank?

• Cheque

• Bill of Exchange

• Bank draft

• None of these

A bill of exchange the acceptor is also known as _________________________

• Drawer

• Drawee

• Payee

• None of these

The bill of exchange which is paid after the expiry of fixed period of time is called:

• Accommodation bill

• Sight bill

• Time bill

• All of these

How many parties are there in promissory note?

• 1

• 2

• 3

• 4

In promissory note the payee is ______________________

• Drawer

• Drawee

• Both A and B

• None of these

Which of the following bills does NOT involve trade dealing?

• Sight bill

• Time bill

• Commercial bill

• Accommodation bill of exchange

Bill of exchange can be cashed from bank before maturity through:

• Overdraft

• Discounting

• Renewal

• Through investment

Which of the following credit instruments can be discounted from a Bank?

• Drawer

• Bill of exchange

• Both A and B

• None of these

Which of the following is true regarding the retirement of a bill?

• Payment of bill before maturity

• Dishonour of bill due to non-payment

• Noting and protesting thereof

• Dishonour of bill due to non-acceptance