Negotiable Instruments Quiz

What type of check is drawn by the bank upon itself?

• Cashier’s Check

• Memorandum Check

• Crossed Check

• Manager’s Check

Which of the following is considered a non-negotiable instrument?

• Certificate of Deposit

• Trade Acceptance

• Postal Money Orders

• Bank Notes

What is a characteristic of a Stale Check?

• It can be cashed at any bank.

• It is a type of Cashier’s Check.

• It is valueless after a reasonable time.

• It is valid for a long time.

Which document is a written acknowledgment by a warehouseman?

• Quedan

• Dock Warrant

• Bill of Lading

• Warehouse Receipt

What does a Clean Bill of Exchange refer to?

• A bill with attached documents.

• A bill without attached documents.

• A bill that is overdue.

• A bill that is issued by a bank.

Which of the following is a type of promissory note?

• Bill of Lading

• Warehouse Receipt

• Letter of Credit

• Certificate of Deposit

Who is primarily liable on a negotiable instrument?

• Indorsers of a bill

• Drawee

• Maker

• Drawer of a bill

What does 'prima facie' mean in the context of negotiable instruments?

• Evidence that can be contested.

• Evidence that is conclusive.

• Evidence that is always accepted.

• Evidence that is irrelevant.

What constitutes value in a negotiable instrument?

• Gifts or donations.

• Promises made verbally.

• Any consideration sufficient to support a simple contract.

• Only cash payments.

What is a characteristic of a Time Bill?

• Payable to bearer.

• Payable only in cash.

• Payable at a fixed future time.

• Payable upon presentation.