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Negotiable Instrument Act-1881

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

According to the Negotiable Instruments Act 1881, a bill of exchange is:

a)

Bill

b)

Valuable Security

c)

Document

d)

Receipt

2.

In a Promissory Note, how many parties are involved:

a)

One

b)

Two

c)

Three

d)

Four

3.

In a Bill of exchange, how many parties are involved:

a)

One

b)

Two

c)

Three

d)

Four

4.

Section 5 of the NI Act deals with:

a)

Holder in due course

b)

Cheque

c)

Promissory Note

d)

Bills of Exchange

5.

The Negotiable Instruments Act, 1881 is an Act to define and amend the law relating to:

a)

cheques

b)

bills of exchange

c)

promissory notes

d)

All of the above

6.

Presumptions u/s 188 includes : , choose the incorrect statement

a)

1. Consideration: Every negotiable instrument is deemed to have been drawn and accepted, endorsed, negotiated, or transferred for consideration..

b)

2. Date: Every negotiable instrument must bear the date on which it is made or drawn

c)

3. Acceptance: Every bill of exchange was accepted within a reasonable time after the date mentioned therein and before the date of its maturity.

d)

4. Transfer: Every transfer should be made after the expiry.

7.

Which section of the NI Act defines the words, ‘Negotiable Instrument’:

a)

Section 13

b)

Section 13A

c)

Section 14

d)

Section 15

8.

Which is a “Promissory Note”

a)

I promise to pay B Rs. 500 and to deliver to him my black horse on 1st January next.

b)

I promise to pay B Rs. 500 seven days /after my marriage with C .

c)

“I acknowledge myself to be indebted to B in Rs. 1, 000, to be paid on demand, for value received.”

d)

I promise to pay B Rs. 500 on D’s death, provided D leaves me enough to pay that sum.

9.

A ‘Cheque’ is a Bills of exchange and has been defined under:

a)

The Negotiable Instruments Act, 1881

b)

The General Clauses Act, 1897

c)

The Reserve Bank of India Act, 1934

d)

The Banking Regulation Act, 1949

10.

Who is entitled at the time of loss or destruction of a note, bill or cheque:

a)

Drawee

b)

Holder.

c)

Drawer

d)

Payee