2nd Year Principles of Banking Chapter 10 TestNegotiable Instruments-II

Q1. Multiple choice questions (Attempt all · 10 × 1 = 10)

1. The bill which can be discounted from central bank:

   1. Sight bill

   2. Time bill

   3. Both a and b

   4. None of these

2. A person who writes the bill is called:

   1. Drawee

   2. Drawer

   3. Payee

   4. Acceptor

3. Bill which is drawn without any trade transaction:

   1. Sight bill

   2. Time bill

   3. Trade bill

   4. Accommodation bill

4. Main parties of promissory note are:

   1. One

   2. Two

   3. Three

   4. Four

5. The endorser of bill is know as:

   1. Drawer

   2. Drawee

   3. Endoser

   4. All of these

6. Bill of exchange is an negotiable instrument which contains:

   1. A written order

   2. Conditional written order

   3. Unconditional written order

   4. None of these

7. A person in whose favour the rights of bill are transferred is called:

   1. Drawer

   2. Payee

   3. Endorsee

   4. All of the above

8. A type of bill of exchange, written without any transaction in business:

   1. Home bill of exchange

   2. Foreign bill of exchange

   3. Commercial bill of exchange

   4. Accommodation bill of exchange

9. A credit instrument which can be discounted from a bank:

   1. Cheque

   2. Bill of exchange

   3. Bank draft

   4. None of the above

10. Promissory note means a:

    1. Promise to pay fixed amount on fixed date

    2. Promise to pay currency notes on fixed date

    3. Promise to pay goods on fixed date

    4. All of above