Banking Awareness Quiz for Bank Exams 2021- 18th May

Q1. Which of the following section in the Negotiable Instruments Act deals with the bill of exchange?
(a)Section 7
(b)Section 5
(c)Section 9
(d)Section 11
(e)None of these

Q2. Which of the following is not a type of negotiable instrument?
(a)Crossed cheque
(b)Promissory notes
(c)A certificate of deposit
(d)Bills of exchange
(e)None of these

Q3. Section 6 of the Negotiable Instruments Act defines……..
(a)Draft
(b)Banker’s Note
(c)Cheque
(d)Promissory notes
(e)None of these

Q4. What is Negotiable Instruments?
(a)Bill of exchange
(b)Promissory note
(c)Cheque payable either to order or to bearer
(d)All of these
(e)None of these

Q5. Dishonor of Negotiable Instrument by Non Payment is covered under section…………. in Negotiable Instrument Act 1882.
(a)Section 82
(b)Section 98
(c)Section 92
(d)Section 68
(e)None of these

Q6. The number of parties to a bill of exchange is _______
(a)4
(b)5
(c)2
(d)3
(e)None of these

Q7. ………………… is a signed document that promises a sum of payment to a specified person or the assignee.
(a)Agreement
(b)Negotiable instrument
(c)Share
(d)All of these
(e)None of these

Q8. In case of a Promissory Note, there are………
(a)2 Parties
(b)5 Parties
(c)4 Parties
(d)3 Parties
(e)None of these

Q9. In which year the Negotiable Instruments Act was passed?
(a)8th December, 1881
(b)7th December, 1883
(c)11th December, 1885
(d) 9th December, 1881
(e)None of these

Q10. If a Minor draws, indorse, deliver and negotiate Negotiable Instruments, it binds………
(a)All the parties including minor
(b)Minor and Only Drawer
(c)All the parties except minor
(d)Minor Only
(e)None of these

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Solutions

S1.Ans(b)
Sol. Section 5 in the Negotiable Instruments Act, 1881 deals with the bill of exchange.

S2.Ans(a)
Sol. Crossed cheque is not a negotiable instrument. A cheque is a negotiable instrument.

S3.Ans(c)
Sol. Section 6 of the Negotiable Instruments Act defines cheque.

S4.Ans(d)
Sol. Negotiable Instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer.

S5.Ans(c)
Sol. Dishonor of Negotiable Instrument by Non Payment is covered under section 92 in Negotiable Instrument Act 1882.

S6.Ans(d)
Sol. Bills of exchange are negotiable instruments that involve 3 parties: the drawer, the drawee and the payee.

S7.Ans(b)
Sol. Negotiable instrument means is a signed document that promises a sum of payment to a specified person or the assignee.

S8.Ans(a)
Sol. There are 2 parties to a promissory note, the person who make the note and the payee to whom the promise is made.

S9.Ans(d)
Sol. The Negotiable Instruments Act was passed on 9th December, 1881.

S10.Ans(c)
Sol. A minor may draw, indorse, deliver and negotiate such instruments so as to bind all parties except himself.

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