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WorksheetsNI Act
Total questions: 20
Worksheet time: 15mins
________ means 'something legally transferable from one person to another for a consideration'.
Instrument
Negotiable
Negotiable Instruments
All of the above
________ means a 'written document by which some legal rights are created in favor of some person'.
Instrument
Negotiable
Negotiable Instruments
All of the above
Negotiable Instrument means a promissory note, bills of exchange or a cheque, payable to ______
Bearer
Order
either to bearer or order
neither bearer nor order
A negotiable instrument is freely transferable, by delivery if it is a/an ________ instrument.
Order
Bearer
Both order & bearer
None of the above
A negotiable instrument is freely transferable by endorsement if it is a/an _______ instrument.
Order
Bearer
Both order & bearer
None of the above
The instrument must be taken in good faith and with a ____
Interest
Consideration
Legal relation
business motive
The number of parties to a bill of exchange is __
2
4
6
3
The number of parties to a promissory note is __
2
4
6
3
__________ cannot be a bearer instrument as per RBI guidelines.
Promissory Note
Bills of exchange
Cheque
None of the above
A promissory note or bill of exchange can be made payable___
On demand
On a specific date
After a specific period
All of the above
In case of bill of exchange, drawee is the _____
maker
acceptor
payee
non of the above
_________ of an instrument means a person legally entitled to possess and receive in his/her name
Owner
Maker
Holder
Receiver
Holder of an instrument is a person who holds the instrument____
for a longer period
before maturity
after maturity
on the behalf of the owner
A holder in due course will get protected from earlier defect of _____
no consideration
conditional delivery
unlawful means
all of the above
A person can become an acceptor for honor of a bill of exchange only if his name is mentioned in the bill.
True
False
Partly True
Partly False
A negotiable instrument drawn in favor of a minor is ___
void
voidable
valid
invalid
All cheques are bills of exchange, but all bills of exchange are not cheques.
True
False
Partly true
Partly false
On the dishonour of cheque due to insufficient funds, the criminal liability of the drawer is the fine only which may extend to double the amount of the cheque, and there is no imprisonment
True
False
Partly true
Partly false
The presentment for acceptance is required in case of ____
Promissory Note (P/N)
Bills of exchange (B/E)
Cheque
Both P/N & B/E
In case of dishonour of a cheque, the holder's remedy is against the _____
drawee of the cheque
drawer of the cheque
Endorsee of cheque
Both drawer and drawee of cheque
