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1. The number of parties to a bill of exchange is

A. 2 B. 3
C. 4 D. 6
Your answer is: B. 3

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2. A promissory note or bill of exchange can be made payable
A. on demand B. on a specific date
C. after a specified period-months or days D. all of the above
Your answer is: D. all of the above

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3. Acceptance is. In case of bill of exchnage
A. compulsory B. optional
C. not compulsory D. adequate
Your answer is: A. compulsory

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4. of an instrument means a person legally entitled to possess aand receive in his own name
A. owner B. maker
C. holder D. receiver
Your answer is: C. holder

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5. What is the time limit to give notice to drawer in case of dishonor?
A. 30 days B. 15 days
C. 45 days D. 60 days
Your answer is: A. 30 days

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6. Dishonour of cheque has been provided under which section?
A. 120 B. 135
C. 138 D. 140
Your answer is: C. 138

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7. Comaplaint for offence punishable under section1 38 is to be made within. Days from
casue of action.
A. 2 months B. 1 month
C. 3 months D. 4 months
Your answer is: B. 1 month

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8. What is the punishment for dishonor of cheque?
A. Maximum 2 years imprisonment or fine upto twice the B. Maximum 1 years imprisonment or fine upto twice the
amount of cheque or with both. amount of cheque or with both.
C. Maximum 2 years imprisonment or fine upto the amount D. Maximum 3 years imprisonment or fine upto twice the
of cheque or with both. amount of cheque or with both.
Your answer is: A. Maximum 2 years imprisonment or fine upto twice the amount of cheque or with both.

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9. Section 6 of NI Act deals with
A. Promissory Note B. Bill of exchange
C. cheque D. none of the above
Your answer is: C. cheque

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10. ...cannot be a bearer instrument
A. Promissory Note B. Bill of exchange
C. cheque D. none of the above
Your answer is: A. Promissory Note
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11. Not negotiable crossing has been provided in which section?
A. 131 B. 132
C. 130 D. 134
Your answer is: C. 130

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12. How many days time has been provided for the drawer to make payment under section
138 from receipt of the notice?
A. 20 days B. 30 days
C. 10 days D. 15 days
Your answer is: D. 15 days

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13. Appellate Court can order payment pending appeal against conviction under which
section?
A. Section 148 B. Section 143 A
C. Section 147 D. Section 138
Your answer is: D. Section 138

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14. When the cheque is crossed with two parsllel lines or with A/c payee only, this crossing is
known as
A. general crossing B. special crossing
C. restrictive crossing D. none of the above
Your answer is: C. restrictive crossing

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15. A negotiable instrument is freely transferable, by endorsement if it is a/an.instrument.
A. order B. bearer
C. both 1 & 2 D. none of the above
Your answer is: A. order

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16. Negotiable instrument means a promissory note, bill of exchange or cheque, payable to.
A. Bearer B. Order
C. either to bearer or order D. neither bearer nor order
Your answer is: C. either to bearer or order

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17. Section 143 A has been inserted vide which amendment Act?
A. NEGOTIABLE INSTRUMENTS (AMENDMENT) ACT, 2016 B. NEGOTIABLE INSTRUMENTS (AMENDMENT) ACT, 2020
C. NEGOTIABLE INSTRUMENTS (AMENDMENT) ACT, 2018 D. NEGOTIABLE INSTRUMENTS (AMENDMENT) ACT, 2019
Your answer is: C. NEGOTIABLE INSTRUMENTS (AMENDMENT) ACT, 2018

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18. Section 13 describes:
A. In strument B. Negotiable Instrument
C. Bill of exchange D. Dishonour
Your answer is: B. Negotiable Instrument

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19. ... Means a written document by which some legal rights are created in favor of some
person.
A. Instrument B. Negotiable
C. Negotiable Instruments D. all of the above
Your answer is: B. Negotiable
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20. Section 15 deals with
A. Assignment B. Endorsement
C. Negotiation D. Transfer
Your answer is: B. Endorsement

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21. Drawer is both debtor to one and creditor to another in case of
A. Promissory Note B. Bill of exchange
C. cheque D. none of the above
Your answer is: B. Bill of exchange

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22. The transferor of an NI is the one
A. who transfer the instrument B. on whose name it is transferred
C. who encashes it D. none of the above
Your answer is: A. who transfer the instrument

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23. Section 4 of NI Act deals with
A. Promissory Note B. Bill of exchange
C. Cheque D. None of the above
Your answer is: A. Promissory Note

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24. when the cheque is crossed with two parallel lines or with word & co. etc. this crossing is
known as
A. general crossing B. special crossing
C. restrictive crossing D. none of the above
Your answer is: A. general crossing

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25. Cheque on which the drawer mentions the date earlier than the date on which it is
presented to the bank, it is called as
A. Anti dated cheque B. Post dated cheque
C. Mutilated Cheque D. Proper cheque
Your answer is: A. Anti dated cheque