The term 'negotiation' in section 14 of the Negotiable Instruments Act, 1881 refers to A. The transfer of a bill of exchange, promissory note or cheque to any person, so as to constitute the person the holder thereof B. The payment by a bank on a negotiable instrument after due verification of the instrument C. The bargaining between the parties to a negotiable instrument D. All of the above.

The term 'negotiation' in section 14 of the Negotiable Instruments Act, 1881 refers to A. The transfer of a bill of exchange, promissory note or cheque to any person, so as to  constitute the person the holder thereof  B. The payment by a bank on a negotiable instrument after due verification of the  instrument  C. The bargaining between the parties to a negotiable instrument  D. All of the above
by

1 Answer

Answer :

A. The transfer of a bill of exchange, promissory note or cheque to any person, so as to  constitute the person the holder thereof
by

Related questions

The section 4 of the Negotiable Instruments Act, 1881 deals with ________ A. Cheque B. Bills of Exchange C. Promissory Note D. All of the Above E. None of the Above

Description : The section 4 of the Negotiable Instruments Act, 1881 deals with ________ A. Cheque B. Bills of Exchange C. Promissory Note D. All of the Above E. None of the Above

Last Answer : C. Promissory Note Explanation: The section 4 of the Negotiable Instruments Act, 1881 deals with Promissory Note.

To whom of the following, payment of the amount due on a promissory note, bill of exchange or cheque must be made in order to discharge the maker or acceptor A. Holder of the instrument B. Indorser of the instrument C. Indorsee of the instrument D. None of the above.

Description : To whom of the following, payment of the amount due on a promissory note, bill of exchange or cheque must be made in order to discharge the maker or acceptor A. Holder of the instrument B. Indorser of the instrument C. Indorsee of the instrument D. None of the above.

Last Answer : A. Holder of the instrument

Can the holder of a negotiable instrument indorsed in blank convert the indorsement into an indorsement in full? A. No, such a conversion is not possible under the Negotiable Instruments Act, 1881 (Section 49) B. Yes, the holder can, without signing his own name, and by writing above the indorser's signature a direction to pay to any other person as indorsee, convert the indorsement in blank into an indorsement in full (Section 49) C. Yes, the holder can by signing his own name and by writing above the indorser's signature a direction to pay to any other person as indorsee, convert the indorsement in blank to an indorsement in full (Section 49) D. None of the above.

Description : Can the holder of a negotiable instrument indorsed in blank convert the indorsement into an indorsement in full? A. No, such a conversion is not possible under the Negotiable Instruments Act, 1881 (Section ... the indorsement in blank to an indorsement in full (Section 49) D. None of the above.

Last Answer : C. Yes, the holder can by signing his own name and by writing above the indorser's signature a direction to pay to any other person as indorsee, convert the indorsement in blank to an indorsement in full (Section 49)

For the purpose of attracting the provisions of section 138 of the Negotiable Instruments Act, 1881, a cheque has to be presented to the bank A. Within a period of six months B. Within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier C. Within a period of 15 days from the date on which it is drawn D. None of the above.

Description : For the purpose of attracting the provisions of section 138 of the Negotiable Instruments Act, 1881, a cheque has to be presented to the bank A. Within a period of six months B. Within a period of six ... . Within a period of 15 days from the date on which it is drawn D. None of the above.

Last Answer : B. Within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier

Presentment of an acceptance is required in case of A. Every Bill of exchange B. Every Bill of exchange payable after sight C. Every promissory note D. Every cheque

Description : Presentment of an acceptance is required in case of A. Every Bill of exchange B. Every Bill of exchange payable after sight C. Every promissory note D. Every cheque

Last Answer : C. Every promissory note

'At sight' under section 21 of the Negotiable Instrument Act, 1881, means A. On presentation B. On demand C. On coming into vision D. None of the above.

Description : 'At sight' under section 21 of the Negotiable Instrument Act, 1881, means A. On presentation B. On demand C. On coming into vision D. None of the above.

Last Answer : A. On presentation

Acceptor for honour can be a party to A. A cheque B. A bill of exchange C. A promissory note D. A hundi

Description : Acceptor for honour can be a party to A. A cheque B. A bill of exchange C. A promissory note D. A hundi

Last Answer : B. A bill of exchange

Cheque is a A. Promissory note B. Bill of exchange C. Both (a) and (b) above D. None of the above.

Description : Cheque is a A. Promissory note B. Bill of exchange C. Both (a) and (b) above D. None of the above.

Last Answer : D. None of the above.

The law regarding negotiable instruments is contained in __________ A. The Bill of exchange Act 1881 B. The Banking Regulation Act 1949 C. Cheques Act, 1881 D. The Negotiable Instruments Act, 1881

Description : The law regarding negotiable instruments is contained in __________ A. The Bill of exchange Act 1881 B. The Banking Regulation Act 1949 C. Cheques Act, 1881 D. The Negotiable Instruments Act, 1881

Last Answer : D. The Negotiable Instruments Act, 1881 Explanation: The Negotiable Instruments Act, 1881 – An Act to define and Law relating to negotiable instruments which are Promissory Notes, Bills of Exchange and cheques.

The Negotiable Instruments Act, 1881 came into force on A. 9th December 1881 B. 19th December 1881 C. 1st March 1882 D. none of the above.

Description : The Negotiable Instruments Act, 1881 came into force on A. 9th December 1881 B. 19th December 1881 C. 1st March 1882 D. none of the above.

Last Answer : A. 9th December 1881

The Negotiable Instruments Act, 1881 applies to A. The whole of India B. The whole of India except the State of Jammu and Kashmir C. Those states as notified by the Union Government from time to time in the Official Gazette D. The whole of India except the State of Jammu and Kashmir and the North- Eastern States.

Description : The Negotiable Instruments Act, 1881 applies to A. The whole of India B. The whole of India except the State of Jammu and Kashmir C. Those states as notified by the Union Government from time to ... D. The whole of India except the State of Jammu and Kashmir and the North- Eastern States.

Last Answer : B. The whole of India except the State of Jammu and Kashmir

If an instrument may be construed either as a promissory note or bill of exchange, it is A. A valid instrument B. An ambiguous instrument C. A returnable instrument D. None of the above.

Description : If an instrument may be construed either as a promissory note or bill of exchange, it is A. A valid instrument B. An ambiguous instrument C. A returnable instrument D. None of the above.

Last Answer : A valid instrument

A promissory note or bill of exchange which is not expressed to be payable on demand, at sight or on presentment is at maturity A. On the 30th day after the day on which it is expressed to be payable B. On the 3rd day after the day on which it is expressed to be payable C. On the 5th day after the day on which it is expressed to be payable D. On the 4th day after the day on which it is expressed to be payable.

Description : A promissory note or bill of exchange which is not expressed to be payable on demand, at sight or on presentment is at maturity A. On the 30th day after the day on which it is expressed to be ... expressed to be payable D. On the 4th day after the day on which it is expressed to be payable.

Last Answer : D. On the 4th day after the day on which it is expressed to be payable.

Which of the following section of Negotiable Instruments Act, 1881 deals with Cheques? A. Section 4 B. Section 5 C. Section 6 D. Section 7 E. None of the Above

Description : Which of the following section of Negotiable Instruments Act, 1881 deals with Cheques? A. Section 4 B. Section 5 C. Section 6 D. Section 7 E. None of the Above

Last Answer : C. Section 6 Explanation: The section 6 of the Negotiable Instruments Act, 1881 deals with Cheques.

An ECS transaction gets bounced and you are unable to recover your money from your customer. Under which Act criminal action can be initiated? A. Negotiable Instrument Act 1881 B. Criminal Procedure Code C. Payment and Settlement Systems Act 2007 D. Indian Companies Act 1956

Description : An ECS transaction gets bounced and you are unable to recover your money from your customer. Under which Act criminal action can be initiated? A. Negotiable Instrument Act 1881 B. Criminal Procedure Code C. Payment and Settlement Systems Act 2007 D. Indian Companies Act 1956

Last Answer : C. Payment and Settlement Systems Act 2007 Explanation: Under the Section 25 of Payment and Settlement Systems (PSS) Act, 2007, dishonour of an electronic fund transfer instruction due to insufficiency ... fine or both, similar to the dishonour of a cheque under the Negotiable Instruments Act 1881.

A Shareholder has been defined by ________ A. Banking Regulation Act, 1949 B. Reserve Bank of India Act, 1934 C. Negotiable Instruments Act, 1881 D. Indian Contract Act, 1872 E. The companies act, 1956

Description : A Shareholder has been defined by ________ A. Banking Regulation Act, 1949 B. Reserve Bank of India Act, 1934 C. Negotiable Instruments Act, 1881 D. Indian Contract Act, 1872 E. The companies act, 1956

Last Answer : E. The companies act, 1956 Explanation: The Companies Act, 1956 ―Small Shareholder‖ means a shareholder holding shares of nominal value of twenty thousand rupees or less in a public company to which section 252 of the Act applies.

The rules framed in the Clayton‟s case have been incorporated in _________ A. Banking Regulation Act, 1949 B. Reserve Bank of India Act, 1934 C. Negotiable Instruments Act, 1881 D. Indian Contract Act, 1872 E. None of the Above

Description : The rules framed in the Clayton‟s case have been incorporated in _________ A. Banking Regulation Act, 1949 B. Reserve Bank of India Act, 1934 C. Negotiable Instruments Act, 1881 D. Indian Contract Act, 1872 E. None of the Above

Last Answer : D. Indian Contract Act, 1872 Explanation: The rules framed in the Clayton‘s case was incorporated in Section 59 of the Indian Contract Act, 1872.

Under section 16 of the Negotiable Instrument Act, 'indorsement in blank' of an instrument means A. Where the indorser does not write anything on the instrument B. Where the indorser signs his name only on the instrument C. Where the indorser writes the name of the person who is directed to pay D. None of the above.

Description : Under section 16 of the Negotiable Instrument Act, 'indorsement in blank' of an instrument means A. Where the indorser does not write anything on the instrument B. Where the indorser signs his name only on ... the indorser writes the name of the person who is directed to pay D. None of the above.

Last Answer : A. Where the indorser does not write anything on the instrument

Banks are required to maintain SLR under_____ A. Section 24 of the Banking Regulation Act B. Section 35 of the Negotiable Instrument Act, 1881 C. Section 24 of RBI Act D. Section 40 of Indian Contract Act, 1872 E. None of the Above

Description : Banks are required to maintain SLR under_____ A. Section 24 of the Banking Regulation Act B. Section 35 of the Negotiable Instrument Act, 1881 C. Section 24 of RBI Act D. Section 40 of Indian Contract Act, 1872 E. None of the Above

Last Answer : A. Section 24 of the Banking Regulation Act Explanation: SLR is governed by the provisions of Section 24 of the Banking Regulation Act. There is no minimum stipulation on SLR (earlier there used to ... with an amendment to the Banking Regulation Act in 2007). However, SLR can not exceed 40%.

Co-operative banks are regulated by the Reserve Bank of India under _________ A. Banking Regulation Act, 1949 B. Banking Laws (Application to Co-operative Societies) Act, 1965 C. Both (A) and (B) D. Negotiable Instrument Act–1881 E. None of the Above

Description : Co-operative banks are regulated by the Reserve Bank of India under _________ A. Banking Regulation Act, 1949 B. Banking Laws (Application to Co-operative Societies) Act, 1965 C. Both (A) and (B) D. Negotiable Instrument Act–1881 E. None of the Above

Last Answer : C. Both (A) and (B) Explanation: Co-operative banks are regulated by the Reserve Bank of India under the Banking Regulation Act, 1949 and Banking Laws (Application to Co-operative Societies) Act, 1965

In determining reasonable time for the purpose of payment of a negotiable instrument A. Public holidays are included B. Public holidays are excluded C. Only the holidays observed by the banks are excluded D. None of the above.

Description : In determining reasonable time for the purpose of payment of a negotiable instrument A. Public holidays are included B. Public holidays are excluded C. Only the holidays observed by the banks are excluded D. None of the above.

Last Answer : B. Public holidays are excluded

The Definition of „Banking‟ is given in _______ A. Negotiable Instrument Act, 1881 B. RBI Act, 1934 C. The Banking Regulation Act, 1949 D. Indian Contract Act, 1872 E. None of the Above

Description : The Definition of „Banking‟ is given in _______ A. Negotiable Instrument Act, 1881 B. RBI Act, 1934 C. The Banking Regulation Act, 1949 D. Indian Contract Act, 1872 E. None of the Above

Last Answer : C. The Banking Regulation Act, 1949 Explanation: As per Section 5(b) of the Banking Regulation Act, 1949 , -banking means the accepting, for the purpose of lending or investment, of deposits ... the public, repayable on demand or otherwise, and withdraw-able by cheque, draft, order or otherwise.

As per section 2(1)(j) of Consumer Protection Act 1986, 'manufacturer' means a person who (i) makes or manufactures any goods or part thereof (ii) does not make or manufacture any goods but assembles parts thereof made or manufactured by others (iii) puts or causes to be put his own mark on any goods made or manufactured by any other manufacturer; Codes: A. (i) & (ii) B. (i) & (iii) C. (ii) & (ii) D. (i), (ii) & (iii)

Description : As per section 2(1)(j) of Consumer Protection Act 1986, 'manufacturer' means a person who (i) makes or manufactures any goods or part thereof (ii) does not make or manufacture any goods but assembles parts thereof made or manufactured by ... B. (i) & (iii) C. (ii) & (ii) D. (i), (ii) & (iii)

Last Answer : D. (i), (ii) & (iii)

If the words "not negotiable" are used with special crossing in a cheque, the cheque is A. Not transferable B. Transferable C. Negotiable under certain circumstances D. None of the above

Description : If the words "not negotiable" are used with special crossing in a cheque, the cheque is A. Not transferable B. Transferable C. Negotiable under certain circumstances D. None of the above

Last Answer : B. Transferable

When a cheque bears across its face an addition of the name of a banker, either with or without the words not negotiable, the cheque is considered to have been crossed A. Specially B. Generally C. Normally D. Either a or b or c

Description : When a cheque bears across its face an addition of the name of a banker, either with or without the words not negotiable, the cheque is considered to have been crossed A. Specially B. Generally C. Normally D. Either a or b or c

Last Answer : A. Specially

A negotiable instrument delivered to a person conditionally or for safe custody, but not for the purpose of negotiation is called _________ A. Protest B. Escrow C. Noting D. All of the Above E. None of the Above

Description : A negotiable instrument delivered to a person conditionally or for safe custody, but not for the purpose of negotiation is called _________ A. Protest B. Escrow C. Noting D. All of the Above E. None of the Above

Last Answer : B. Escrow Explanation: An escrow account is a temporary pass through account held by a third party during the process of a transaction between two parties.

Who among the following cannot cross a cheque? A. Drawer B. Holder C. Banker D. Foreigner.

Description : Who among the following cannot cross a cheque? A. Drawer B. Holder C. Banker D. Foreigner.

Last Answer : B. Holder

In a promissory note, the amount of money payable A. Must be certain B. May be certain or uncertain C. Is usually uncertain D. None of the above.

Description : In a promissory note, the amount of money payable A. Must be certain B. May be certain or uncertain C. Is usually uncertain D. None of the above.

Last Answer : A. Must be certain

Scheduled banks are required to keep cash reserve with RBI, interms of _______ A. Section 24 of the Banking Regulation Act, 1949 B. Section 20 of the Banking Regulation Act, 1949 C. Section 42(i) of the RBI Act, 1934 D. Section 42 of Negotiable Instruments Act

Description : Scheduled banks are required to keep cash reserve with RBI, interms of _______ A. Section 24 of the Banking Regulation Act, 1949 B. Section 20 of the Banking Regulation Act, 1949 C. Section 42(i) of the RBI Act, 1934 D. Section 42 of Negotiable Instruments Act

Last Answer : C. Section 42(i) of the RBI Act, 1934 Explanation: Every bank included in the Second Schedule shall maintain with the Bank an average daily balance the amount.

Promises which form the consideration or part thereof, for each other under section 2(F) are called A. Acceptances for different proposals B. Agreements C. Reciprocal promises D. Consideration

Description : Promises which form the consideration or part thereof, for each other under section 2(F) are called A. Acceptances for different proposals B. Agreements C. Reciprocal promises D. Consideration

Last Answer : C. Reciprocal promises

Bank Holidays are covered by which of the following? A. As per the order of the GOI B. As per the order of the IBA C. Negotiable Instruments Act D. RBI Act E. Other than those given as options

Description : Bank Holidays are covered by which of the following? A. As per the order of the GOI B. As per the order of the IBA C. Negotiable Instruments Act D. RBI Act E. Other than those given as options

Last Answer : C. Negotiable Instruments Act Explanation: Bank Holidays are declared by Central/State Governments/ Union Territory under the Negotiable Instruments (NI) Act, 1881.

A cheque for a fixed amount that may be cashed or used in payment abroad after endorsement by the holder‟s signature is known as ___________ A. Travellers cheque B. Multicity Cheque C. Mutilated Cheque D. Crossed Cheque

Description : A cheque for a fixed amount that may be cashed or used in payment abroad after endorsement by the holder‟s signature is known as ___________ A. Travellers cheque B. Multicity Cheque C. Mutilated Cheque D. Crossed Cheque

Last Answer : A. Travellers cheque Explanation: Traveller‘s cheque is a medium of exchange that can be used in place of hard currency. Traveller‘s cheques are often used by individuals travelling on vacation to foreign countries.

Crossing of a cheque effect the A. Negotiability of the cheque B. Mode of payment on the cheque C. Both (a) and (b) D. None of the above

Description : Crossing of a cheque effect the A. Negotiability of the cheque B. Mode of payment on the cheque C. Both (a) and (b) D. None of the above

Last Answer : C. Both (a) and (b)

The indorser is excluded from his liability for dishonour of instrument towards his subsequent holder in case of A. Sans Recourse Endorsement B. Facultative Endorsement C. Sans Frais Endorsement D. None of the above.

Description : The indorser is excluded from his liability for dishonour of instrument towards his subsequent holder in case of A. Sans Recourse Endorsement B. Facultative Endorsement C. Sans Frais Endorsement D. None of the above.

Last Answer : B. Facultative Endorsement

Q6 All cheques , Bills etc preferable at a treasury for payment being non negotiable instruments can be endorsed only once .The above said statement isa. True b. False

Description : Q6 All cheques , Bills etc preferable at a treasury for payment being nonnegotiable instruments can be endorsed only once . The above said statement is a. True b. False

Last Answer : a. True

In Indian Contract Act, the term consensus ad idem means A. Parties under a mistake B. Parties under the free consent C. Parties agreeing upon the same thing in same sense D. None of these

Description : In Indian Contract Act, the term consensus ad idem means A. Parties under a mistake B. Parties under the free consent C. Parties agreeing upon the same thing in same sense D. None of these

Last Answer : C. Parties agreeing upon the same thing in same sense

As per section 2(8), of the Sales of Goods Act, insolvent means a person A. Who has ceased to pay his debts in the ordinary course of business B. Or cannot pay his debts as they become due C. Both (a) and (b) D. None of above

Description : As per section 2(8), of the Sales of Goods Act, insolvent means a person A. Who has ceased to pay his debts in the ordinary course of business B. Or cannot pay his debts as they become due C. Both (a) and (b) D. None of above

Last Answer : C. Both (a) and (b)

What are credit promissory bill of exchange of letter credit?

Description : What are credit promissory bill of exchange of letter credit?

Last Answer : What is the answer ?

Which of the following is an Internet-based company that makes it easy for one person to pay another over the Internet? a. electronic cheque b. electronic bill payment c. Conversion rates d. Financial cybermediary

Description : Which of the following is an Internet-based company that makes it easy for one person to pay another over the Internet? a. electronic cheque b. electronic bill payment c. Conversion rates d. Financial cybermediary

Last Answer : d. Financial cybermediary

Notice of dishonour must be given A. To the drawer and drawee only B. To the drawer, acceptor and endorser(s) only C. To all the parties liable on the instrument or to their duly authorized agent D. To all the parties who are secondarily liable on the instrument or to their duly authorized agent

Description : Notice of dishonour must be given A. To the drawer and drawee only B. To the drawer, acceptor and endorser(s) only C. To all the parties liable on the instrument or to their duly ... agent D. To all the parties who are secondarily liable on the instrument or to their duly authorized agent

Last Answer : D. To all the parties who are secondarily liable on the instrument or to their duly authorized agent

_______ takes place when at least one party to a potential exchange thinks about the means of achieving desired responses from other parties. A. Marketing management B. Forecasting C. Segmentation D. Targeting E. Distribution

Description : _______ takes place when at least one party to a potential exchange thinks about the means of achieving desired responses from other parties. A. Marketing management B. Forecasting C. Segmentation D. Targeting E. Distribution

Last Answer : A. Marketing management

Money market is a market for - (1) Short term fund (2) Long term fund (3) Negotiable instruments (4) Sale of shares

Description : Money market is a market for - (1) Short term fund (2) Long term fund (3) Negotiable instruments (4) Sale of shares

Last Answer : (1) Short term fund Explanation: The money market is where financial instruments with high liquidity and very short maturities are traded. It is used by participants as a means for borrowing ... the common money market instruments are: commercial paper, municipal notes, interest rate swaps, etc.

Money market is a market for (1) Short term fund (2) Long term fund (3) Negotiable instruments (4) Sale of shares

Description : Money market is a market for (1) Short term fund (2) Long term fund (3) Negotiable instruments (4) Sale of shares

Last Answer : Short term fund

Under the historic adjustable pegged exchange-rate system, member countries were permitted to correct persistent and sizable payment deficits (i.e., fundamental disequilibrium) by: A. Officially revaluing their currencies B. Officially devaluing their currencies C. Allowing their currencies to depreciate in the free market D. Allowing their currencies to appreciate in the free market

Description : Under the historic adjustable pegged exchange-rate system, member countries were permitted to correct persistent and sizable payment deficits (i.e., fundamental disequilibrium) by: A. Officially ... depreciate in the free market D. Allowing their currencies to appreciate in the free market

Last Answer : B. Officially devaluing their currencies

Under the historic adjustable pegged exchange-rate system, member countries were permitted to correct persistent and sizable payment deficits (i.e., fundamental disequilibrium) by: A. Officially revaluing their currencies B. Officially devaluing their currencies C. Allowing their currencies to depreciate in the free market D. Allowing their currencies to appreciate in the free market

Description : Under the historic adjustable pegged exchange-rate system, member countries were permitted to correct persistent and sizable payment deficits (i.e., fundamental disequilibrium) by: A. Officially ... depreciate in the free market D. Allowing their currencies to appreciate in the free market

Last Answer : B. Officially devaluing their currencies

Transporting and storing goods is part of which of the following marketing channel functions? A. negotiation B. physical distribution C. contact D. matching

Description : Transporting and storing goods is part of which of the following marketing channel functions? A. negotiation B. physical distribution C. contact D. matching

Last Answer : B. physical distribution

What are the important instruments under Indian Stamp Act, 1899? A. bill of exchange B. power of Attorney C. policy of insurance D. None of the Above E. All of the Above

Description : What are the important instruments under Indian Stamp Act, 1899? A. bill of exchange B. power of Attorney C. policy of insurance D. None of the Above E. All of the Above

Last Answer : E. All of the Above Explanation: Important Instruments are agreements, conveyances, exchange, gift, Certificate of sale, deed of partition, Power of Attorney to sell immovable property when given ... lading, debenture, letter of credit, policy of insurance, proxy, receipt and transfer of shares.

Which of the following is the negotiable instrument? A. Fixed Deposit of a Bank B. Share certificate issued by a PSU C. Demand Draft issued by a bank D. Debenture of a company E. Airway Receipt

Description : Which of the following is the negotiable instrument? A. Fixed Deposit of a Bank B. Share certificate issued by a PSU C. Demand Draft issued by a bank D. Debenture of a company E. Airway Receipt

Last Answer : C. Demand Draft issued by a bank Explanation: A demand draft is a negotiable instrument similar to a bill of exchange. A bank issues a demand draft to a client (drawer), directing another bank (drawee) or one of its own branches to pay a certain sum to the specified party (payee).

If a person dies and is at time of death the holder of a saving certificate and there is no nomination in force _____should be produced within 3 month for payment a) Death and probate of his willb) Letter of administration of his estatec) A succession certificate granted under the Indian succession act 1925,d) Any one of the abovee) None of these

Description : If a person dies and is at time of death the holder of a saving certificate and there is no nomination in force _____should be produced within 3 month for payment a) Death and probate of his will ... certificate granted under the Indian succession act 1925, d) Any one of the above e) None of these

Last Answer : d) Any one of the above