QUIZ Negotiable Instrument Act

Fill in the blanks

1.

2.

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4.

The person who obtains a negotiable instrument in ________ & for ______ is the full legal owner. Negotiable instrument creates a _______ who issues it. It is assumed that every negotiable instrument has been prepared or made for _________. If instrument is obtained by 3rd person or party through unlawful meanful the holder becomes _____________

5. A person who prepares the promissory

notes is called as a _______. 6. The word _____________ means to take for granted that some things are true at the outset. 7. negotiable instrument must be in _________.

8. A promissory note must contain a

_________ to pay. 9. NIA are the most common credit devices which are freely used in handling ________ transaction. 10. A Negotiable instrument is a method of transferring a _______ from one person to another

Answer in one word

1. Parties to promissory notes....... 2. Parties to the Bill of exchange...... 3. Parties to cheque.....

4. Name a Negotiable Instrument where an

order to pay to a contain person in given.. 5. An account holder draws the cheque on whom...?

6. What is the cheque called when two parallel

7. 8. 9.

10.

lines are drawn across the face of cheque...? Bearer cheque is also known as....? Name the negotiable instrument prepared in local language.....? What is the year in which negotiable instrument act came in existence...? What does dishonored means...?

True or False
1. Negotiable instrument are transferable from 2. 3. 4. 5.

one person to another. Acceptance can be given after the date of maturity. time to transfer of negotiable instrument should be before the date of maturity of bill. Drawee is the maker of bill of exchange. In a cheque the drawee must be a banker.

6. In a bill of exchange there is a promise to

pay. 7. In a promissory note, the promise given to pay must be unconditional. 8. Forgery can be ratified in negotiable instrument act. 9. Every prior party to an instrument is liable to holder in due course until the instrument is duly satisfied.

10. Date is not a necessary factor in negotiable

instrument.

Multiple-choice Question
1. Which is the following does not come under

negotiable instrument act...? a) Cheque c) promissory note b) B.O.E d) cash memo 2. Which negotiable instrument Contains a promise..? a) B.O.E c) Cheque b) Promissory note d) Hundi

3. A negotiable instrument is in...?

a) Written b) Oral

c) Written & oral d) None of these

4. Which of the following is a type of cheque?

a) Hundi cheque b) B.O.E cheque

c) Crossed cheque d) All of the above

5. A person who draws the cheque is known

as a ... a) Drawer c) Payee b) Drawee d) Acceptor 6. The year in which negotiable instrument act came into existence... a)1881 c)1885 b)1880 d)1882

7. Time to transfer of Negotiable Instrument

should be .........
a) Before the date of maturity of bill b) After the date of majority of bill c) No time constraint d) None of above 8. In B.O.E , the person to whom the payment is made is the a) Drawer c) Payee b) Acceptor d) Drawee

The person making endorsement is an..... a) Endorser c) Acceptor b) endorsee d) Drawee 10. Full form of N.I.A a) non instrument act b) negotiable instrument act c) non interesting act d) negotiably invented act
9.

THANK YOU

ANSWERS...

Fill in the blanks

1.

2.

3.

4.

The person who obtains a negotiable instrument in Good faith & for value received is the full legal owner. Negotiable instrument creates a liability who issues it. It is assumed that every negotiable instrument has been prepared or made for consideration. If instrument is obtained by 3rd person or party through unlawful meanful the holder becomes holder in due course

5. A person who prepares the promissory

notes is called as a maker. 6. The word presumption means to take for granted that some things are true at the outset. 7. negotiable instrument must be in writting.

8. A promissory note must contain a promise

to pay. 9. NIA are the most common credit devices which are freely used in handling commercial transaction. 10. A Negotiable instrument is a method of transferring a debt from one person to another

Answer in one word

1. 2.

3. 4.

5.

Parties to promissory notes....... [ maker, payee, holder, endorser, endorsee] Parties to the Bill of exchange...... [ drawer,drawee,acceptor,payee,acceptor for honor] Parties to cheque..... [ drawer, drawee, payee] Name a Negotiable Instrument where all order to pay to a contain person in given.. [ bills of exchange] An account holder draws the cheque on whom...? [ banker]

What is the cheque called when two parallel lines are drawn across the face of cheque...? [ cross cheque] 7. Bearer cheque is also known as....? [ uncross\ open cheque] 8. Name the negotiable instrument prepared in local language.....? [Hundi] 9. What is the year in which negotiable instrument act came in existence...? [1881] 10. What does dishonored means...? [non payment]
6.

True or False
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2.
3. 4. 5.

Negotiable instrument are transferable from one person to another. - true Acceptance can be given after the date of maturity. - false time to transfer of negotiable instrument should be before the date of maturity of bill. - true Drawee is the maker of bill of exchange. - false In a cheque the drawee must be a banker. - true

6. In a bill of exchange there is a promise to

pay. - false 7. In a promissory note, the promise given to pay must be unconditional. - true 8. Forgery can be ratified in negotiable instrument act. - false 9. Every prior party to an instrument is liable to holder in due course until the instrument is duly satisfied. - true

10. Date is not a necessary factor in negotiable

instrument. - false

Multiple-choice Question
1. Which is the following does not come under

negotiable instrument act...? a) Cheque c) promissory note b) B.O.E d) Love letter 2. Which negotiable instrument Contains a promise..? a) B.O.E c) Cheque b) Promissory note d) Hundi

3. A negotiable instrument is in...?

a) Written b) Oral

c) Written & oral d) None of these

4. Which of the following is a type of cheque?

a) Hundi cheque b) B.O.E cheque

c) Crossed cheque d) All of the above

5. A person who draws the cheque is known

as a ... a) Drawer c) Payee b) Drawee d) Acceptor 6. The year in which negotiable instrument act came into existence... a)1881 c)1885 b)1880 d)1882

7. Time to transfer of Negotiable Instrument

should be .........
a) Before the date of maturity of bill b) After the date of majority of bill c) No time constraint d) None of above 8. In B.O.E , the person to whom the payment is made is the a) Drawer c) Payee b) Acceptor d) Drawee

The person making endorsement is an..... a) Endorser c) Acceptor b) endorsee d) Drawee 10. Full form of N.I.A a) non instrument act b) negotiable instrument act c) non interesting act d) negotiably invented act
9.