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Endorsement

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

2.A separate slip attached to negotiable instrument is known as

a)

memo

b)

pay in slip

c)

allonge

d)

counterfoil

2.

3.When the endorser signs only his name it is called

a)

general endorsement

b)

special endorsement

c)

conditional endorsement

d)

partial endorsement

3.

4.A type of an endorsement that negates the liability of the endorser is called

a)

general endorsement

b)

blank endorsement

c)

special endorsement

d)

conditional endorsement

4.

5.The person in whose favour the endorsement is done is called

a)

endorser

b)

endorsee

c)

negotiator

d)

bearer

5.

6.The banker who makes payment of a negotiable instrument is called

a)

collecting banker

b)

paying banker

c)

drawing banker

d)

all the above

6.

7.Banker's duty to make payment of a cheque is contained in section ___ of the negotiable instruments act, 1881

a)

30

b)

31

c)

32

d)

33

7.

8.A banker has to make payment as per instructions of

a)

the drawee

b)

the drawer

c)

the payee

d)

the endorser

8.

9.A mutilated cheque is one

a)

that is torn into pieces

b)

that is soiled

c)

that is stale

d)

all the above

9.

10.The term payment in due course means

a)

payment made in good faith

b)

payment made without negigence

c)

payment made without a reasonale ground to suspect the title of the holder

d)

all the above

10.

11.Which of the following ia not an example of material alteration

a)

alteration of date and amount of the cheque

b)

alteration of name of the parties of the cheque

c)

alteration of crossing of the cheque

d)

conversion of bearer into order cheque

11.

12.The term drawee bank refers to

a)

the bank on which a cheque is made payable to

b)

The bank on which a cheque is collectible

c)

the collecting banker

d)

none of the above

12.

13. Banking ombudsman was set up by

a)

RBI

b)

SEBI

c)

MCA

d)

IRDA

13.

14. Statutory protection is available to the collecting banker if

a)

the cheque is a crossed one

b)

He makes payment for the customer

c)

He collects as anagent and in due course

d)

all the above

14.

15. The banking ombudsman has a tenure of five years

a)

true

b)

false

15.

1.Endorsement is defined in section ___ of the negotiable instruments act, 1881

a)

14

b)

13

c)

12

d)

15