MCQs NI Act.pptx

MCQs on Negotiable Instruments Act for revision after the study of the Act

1. Prof.Shantilal Hajeri MCQs on Contract Act

2. What are the features of a negotiable instrument? A negotiable instrument is in writing It is expressed in terms of money It is payable to bearer or to the order of a person All of these A B C D Prof.Shantilal Hajeri

3. Which is not a Negotiable Instrument? National savings certificate Promissory note Bill of Exchange Cheque A B C D Prof.Shantilal Hajeri

4. Which is a Negotiable Instruments? National savings certificate Promissory note Fixed Deposit receipt Railway receipt A B C D Prof.Shantilal Hajeri

5. Who is not a partiy in a Cheque? Drawer Drawee Promissor Payee A B C D Prof.Shantilal Hajeri

6. S V Hajeri has issued a cheque to Ashok Hajeri drawn on Bank of Maharashtra. In this case which of the following statement is false? Drawer is S V Hajeri Drawere is Bank of Maharashtra Payee is Ashok Hajeri Debtor is Ashok Hajeri A B C D Prof.Shantilal Hajeri

7. Which one is not a Types of Endorsements? Endorsement in blank Endorsement in full Per pro endorsement Conditional endorsement A B C D Prof.Shantilal Hajeri

8. What is the Example of Material alteration? Converting a bearer cheque into an order cheque Crossing an uncrossed cheque Converting an order cheque into a bearer cheque Writing the date if the date is blank A B C D Prof.Shantilal Hajeri

9. What is not the Example of Material alteration? Converting an order cheque into a bearer cheque Canceling a crossing Alteration in Date, Amount or name of the Payee Converting a bearer cheque into an order cheque A B C D Prof.Shantilal Hajeri

10. A collecting banker gets protection if he fulfils the conditions A collecting banker acts in good faith and without negligence Cheque is crossed generally or specially to himself Collects cheque for a customer All of These A B C D Prof.Shantilal Hajeri

11. Which conditions should be fulfilled if the bouncing of a cheque has to become criminal offence? Cheque should have been issued towards discharge of a debt or other liability Cheque should have been returned unpaid with the reason “Outdated”. Drawer's signature matches with specimen. Irregular Endorsement A B C D Prof.Shantilal Hajeri

12. An instrument in writing containing an unconditional undertaking to pay a certain sum of money is called as _______. Promissory note Bill of Exchange Cheque Letter of Undertaking A B C D Prof.Shantilal Hajeri

13. A bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand is called as _______. Promissory note Bill of Exchange Cheque Letter of Undertaking A B C D Prof.Shantilal Hajeri

14. An instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money is called as _______. Promissory note Bill of Exchange Cheque Letter of Undertaking A B C D Prof.Shantilal Hajeri

15. A bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand is called as _______. Promissory note Bill of Exchange Cheque Letter of Undertaking A B C D Prof.Shantilal Hajeri

16. Transfer of a negotiable instrument to any person, so as to constitute the person the holder thereof, it is called as ____________. Endorsement Negotiation Sale of instrument Transfer of property. A B C D Prof.Shantilal Hajeri

17. Bearer cheques are negotiated by _________ Endorsement Delivery Endorsement and Delivery Transfer deed A B C D Prof.Shantilal Hajeri

18. Order cheques are negotiated by _________ Endorsement Delivery Endorsement and Delivery Transfer deed A B C D Prof.Shantilal Hajeri

19. Signature of the marker or holder of a negotiable instrument for the purpose of negotiation on the back or face thereof is called as _________. Endorsement Acknowledgement Negotiation Transfer A B C D Prof.Shantilal Hajeri

20. If the cheque is payable to Mr. Vishal or order. Vishal simply signs on the back of the cheque without naming any body. This is an example of _____ Full endorsement Per pro endorsement Blank endorsement Restrictive endorsement A B C D Prof.Shantilal Hajeri

21. Pay to Swaroopa or order. Sd.Vishal. This is an example of _____ Full endorsement Per pro endorsement Blank endorsement Restrictive endorsement A B C D Prof.Shantilal Hajeri

22. Where a cheque bears across its face an addition of the name of a banker it is called as __________. Account payee crossing Special crossing General crossing Not negotiable crossing A B C D Prof.Shantilal Hajeri

23. Where a cheque bears across its face an addition of the words “and company” , between two parallel transverse lines, it is called as __________. Account payee crossing Special crossing General crossing Not negotiable crossing A B C D Prof.Shantilal Hajeri

24. Where a transferee does not get better title than that of the transferor, it is called as _______. Account payee crossing Special crossing General crossing Not negotiable crossing A B C D Prof.Shantilal Hajeri

25. Where a cheque bears across its face the words "Account Payee" it is called as __________. Account payee crossing Special crossing General crossing Not negotiable crossing A B C D Prof.Shantilal Hajeri