Negotiable Instruments Quiz

The word "Banker" is defined in NI Act-1881 in its section:

• 4

• 3

• 5

• 2

What is a Negotiable Instrument under the Negotiable Instruments Act, 1881?

• A document that promises payment of money to the bearer

• A movable property that can be transferred

• A document containing a guarantee for goods

• A legally binding contract

Which section of the Act defines a promissory note?

• Section 4

• Section 5

• Section 6

• Section 7

Negotiable Instruments means a Promissory note, Bill of exchange or Cheque, payable:

• Bearer

• Order

• Either to bearer or order

• Neither bearer nor order

Dishonor of a cheque due to insufficient funds attracts which section of the Act?

• Section 126

• Section 138

• Section 142

• Section 145

Which of the following is NOT a negotiable instrument as per the Act?

• Cheque

• Promissory Note

• Letter of Credit

• Bill of Exchange

The maturity period of a bill of exchange payable after sight is:

• 30 days

• 3 days (grace period)

• 15 days

• As per the terms mentioned in the bill

A cheque becomes stale after how many months from the date of issue?

• 1 month

• 3 months

• 6 months

• 12 months

Crossing of a cheque means:

• The cheque can only be paid through a bank account

• The cheque is invalid

• The cheque is meant for cash withdrawal only

• The cheque is canceled

Endorsement in blank means:

• The endorser writes the name of the endorsee on the instrument

• The endorser signs only, without specifying the endorsee

• The endorser writes instructions on the instrument

• None of the above