Worksheetsnegotiable instruments
Total questions: 14
Worksheet time: 7mins
A negotiable instrument may be oral or written.
True
False
The act of placing one's signature on an instrument, usually on the back, to transfer it to another:
drawee
endorsement
negotiation
schedule
A holder in due course is one who has a negotiable instrument by fulfilling three conditions
i) Good faith
ii) Negotiability
iii) Valid consideration
iv) Without negligence
i & ii
ii & iv
i,ii & iii
i , iii & iv
In case of order instrument, two things are
required for a valid transfer: --------------------------- and -----------------------------
Transferability & Negotiability
Endorsement & delivery
Transferability & Delivery
Endorsement & Negotiability
negotiable instrument means
promissory notes
bills of exchange
cheque
All of the above
An instrument in writing containing an unconditional order signed by the maker, directing the certain person to pay certain some of money only to or order of a certain person is called as
Promissory note
Cheque
Bill of exchange
How many parties are normally involved when using a check?
two
three
four
five
Which of the following is NOT a requirement for negotiability?
Must be written
Must be signed
Must contain a condition of payment
Must be for an exact amount of money
How do you endorse a check?
Sign the back
Sign the front
Give it to your friend
Cancel it
Which of the following is NOT an example of material alteration?
Changing the date on a check
Editing the name of the payee
Tearing a check out of your checkbook
Altering the amount listed on the check
Why should you never leave any part of a check blank?
Someone can alter it
Someone could steal it
The bank might not accept it
All of the above
The cutomer who draws the cheque on the bank is called -------------------------
Drawee
Drawer
Payee
Payer
Endorsement made on reverse side of the instrument with mere signature of the endorser without name is called __________
Blank endorsement
Full endorsement
Conditional endorsement
Presentment for Acceptance is necessary in case of which of the following negotiable instruments ?
Bills of exchange
Cheques
Promissory note
Treasury bills
