2nd Year Principles of Banking Chapter 9 TestNegotiable Instruments-I

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

1. Who did print the cheque in specific form for the first time or firstly:

   1. Imperial bank

   2. Bank of England

   3. State bank of Pakistan

   4. None of the above

2. Bank pays money at its counter for:

   1. Bearer cheque

   2. Order cheque

   3. (a) and (b)

   4. Crossed cheque

3. It is considered unimportant change in a cheque:

   1. Change in date

   2. Change in crossing

   3. Cancellation of crossing

   4. Change in amount

4. Endoress of cheque is a person:

   1. Who receives the amount of cheque

   2. In whose favour the rights of cheque are transferred

   3. On whom the cheque is drawn

   4. Who draws a cheque

5. Each leaf of the cheque book contains customer's ......:

   1. Father's name

   2. Address

   3. Telephone number

   4. Account number

6. Crossing makes the cheque:

   1. Unsafe

   2. Unacceptable

   3. Safe

   4. Acceptable

7. In case of non-negotiable instruments, the rights can:

   1. Be transferred

   2. Not be transferred

   3. Be conditionally transferred

   4. All of the above

8. If drawer of cheque is a payee himself then what word is written after the word pay:

   1. Order

   2. Bearer

   3. Self

   4. None of the above

9. Who can endorse the cheque:

   1. Drawer of cheque

   2. Holder of cheque

   3. Both (a) and (b)

   4. None of above

10. Bank receives ...... on every cheque:

    1. Profit

    2. Commission

    3. Tax

    4. Duty