Negotiable Instruments Quiz

A negotiable instrument can be transferred from one person to another without any formalities.

• True

• False

A promissory note can be conditional upon an event happening in the future.

• True

• False

A cheque is a type of bill of exchange that is always payable on demand.

• True

• False

The drawer of a cheque is the person or entity to whom the cheque is payable.

• True

• False

A post-dated cheque can be encashed before the date mentioned on the cheque.

• True

• False

A crossed cheque can be cashed directly at the bank counter by the payee.

• True

• False

A bill of exchange requires three parties: the drawer, the drawee, and the payee.

• True

• False

A cheque that has expired after 3 months is called a stale cheque.

• True

• False

A traveler's cheque is a negotiable instrument typically used for international transactions.

• True

• False

A cheque written to 'self' allows the drawer to withdraw money from their own account.

• True

• False