Principles Of Banking - Set II 1, Under which Section of NI Act, meaning of a Negotiable Instrument has been defined: a) U/s 3b) Uls 4) Uls 10 d) Uis 13 2. Which of the following is not a Negotiable Instrument: a) Commercial Paper b) Term Deposit Receipt c) Certificate of Deposit d) None of these 3. NI Act deals in: a) Bill of exchange, Circular notes, Bonds & Bearer Debentures b) Cheques, Share warrants, Bank notes c) Drafts, Cheques, Bills of exchange & Promisory notes d) All of these 4, Which of the following statement is correct in relation to negotiable instruments in the NI Act: a) Been indirectly defined b) Has not been defined c) Has been defined d) None of these 5. Out of the following NI Act has permitted: ; Or” a) Electronic/Truncated cheques b) Digital signature c) Application of IT Act d) All of 6. Under 85(1) of NI Act, Paying banker gets protection in respect of: a) Forged endorsement b) Forgery of drawer's signature c) Both of these of these 7. Under which Section are Bank holidays declared: Or a) Sec 25 of Transfer of Property Act b) Sec 25 of NI Act c) Sec 25 of Daf days Act d) None of these 8. After amendment of NI Act, the number of Sections have been, a) 145b) 146 c) 147 d) 148 from 142 to: 9, Who is the drawee of a Cheque: a) Always the Bank that has to pay the amount b) The ‘hose Account has to be debited c) Always the person who signs the cheque d) None of these < 10. Cheque is always payable on: a) Demand b) After a specified future ‘he will of the Bank d) If presented by beneficiary/bearer 11, Cheque is a: a) Promisory note b) Bill of exchai either a nor bd) Promisory note only when endorsed 12, A cheque may be: a) Post dated b) Ante dats ated d) a, bore a) Banker b) Ac ©) Holder d) Payee used in lieu of cheques are: fe Instrument b) Negotiable Instrument as cheques ¢) Quasi Negotiable Instrument d) None of these ycom drew a PN written as, ‘We promise to pay the bearer a sum of Rs.10000.00 on demand! - Sd - MD. Bank collect this Instrument: it isa valid Instrument, acceptable to the Bank b) No, as bearer PN is prohibited under RBI Act ¢) It does not in the clauses & is an incomplete instrument d) If it contains all the essential features, it can be accepted 16, Which of the following statement is true in respect of a usance PN: a) APN has to be stamped as per tenure b) It has to be stamped as per amount c) PN has to be stamped as per both tenture & amount d) Stamp duty varies from state to state 17. APN payable on demand has been written on 10" January 2010 and was presented on 15* January 2010 for payment. The due date for payment will be calculated from: a) 15 January 2010 b) 120" January 2010 c) Either of these two dates d) DP note is payable on demand18, What is the basic nature of a Commercial paper: a) Bill of exchange b) Hundi c) Usance Promisory Note d) Debanture 19, Asper NI Act, Sec 138, there is a provision for penalty: a) If cheque given as a gift is dishonored b) If signature varies c) If cheque issued in discharge of liability is dishonored due to insufficient funds d) If cheque is post dated 20, In order to get remedy under Sec 138, a holder must give notice to the drawer within: a) 15 days of return of cheque b) 30 days of return of cheque c) No time is specified d) No notice n 21, Ifan usance promissory note becomes payable on a Public holiday, it can be paid o a) Next working day b) Preceding working day c) Payable three days after d) None of Or” 22, Abill drawn in Malta in favor of a trader in Kolkata payable at Mumbai is: a) A foreign bill b) An accommodation bill c) An inland bill d) Both b & ¢ @ 23, A bill is drawn in Coimbatore and is acceptable/payable in Chennai but the @ in New York. This is a: a) Foreign bill b) Inland bill c) Supply bill d) a & ¢ 24, Balbir draws a bill of exchange on Chand & endorses is to Rahim, SS. endorsed it in favor of Steve. The bill is dishonored. Steve can recover the amount from: a) Balbirb) Rahim c) Balbir & Rahim d) Balbir, Chand & Rabi 5 25. A bill of exchange reads as - "Pay to our order Rs. 1 la a) The drawee can pay as per his convenience as no an inchoate instrument and payment cannot be enor: Me received.” In such acase: ified b) The bill is payable on demand c) This bill is ne of these 26. The Branch receives a bill drawn on "G" w) adjudged insolvent. The Bank should present the bill to: a) Legal heir of "G"b) Son, daughter or " ¢) Receiver appointed by the court d)"G" himself 27, ‘The Branch has received a bill pa has left the city. The options availat a) Present the bill at Siliguri b) ‘olkata or Siliguri, The bill was presented in Kolkata but the drawee the bill dishonored c) Give advertisement in Kolkala newspapers advising -eptance d) Should display a notice on the notice board 28. "Not-negotial sing is a caution to: 29, ritten across its face the name of a Bank without the transverse parallel lines, In this case: a) The; ‘be deemed to be generally crossed b) The cheque will be deemed to be specially crossed as per See 124 ’c) The cheque will not be deemed to be crossed at all as there are no transverse parallel lines as per Sec 12; ct d) The cheque will be returned to the drawer for authentication 30: following, who cannot cross a cheque: lder b) Drawee c) Drawer d) None of these 3Y. A cheque bearing a crossing stamp "Under Rupees Ten Thousand” has been presented at the counter. It should: a) Be refused payment across the counter & paid through a Bank only b) Be paid for Rs, 9999.00 c) Be paid after verification d) None of these 32, The holder of the cheque erased the crossing in such a way that it could not be made out by the naked eye and has been paid. Under which of the following Sections may the Branch get protection: a) No protection under Sec 420 b) U/s 130.¢) U/s 131 d) Uls 89 33, Ms, Kamini gets a cheque as her wedding gift, She becomes: a) Holder for value b) Holder in due course c) Holder only d) None of these34, Mr. Seth has given his power of attorney to Mr. Sam. The correct endorsement of a cheque favoring Mr. Seth is: a) Mr. Sam Sd/- b) Per pro Mr. Seth signed by Mr.Sam c) Per pro Mr. Seth signature as Mr. Sam d) None of these Answers to Principles of Banking - Set I Td 2b Be ha 5d 6a 7b Be 9a 10.a & iT. 2d 13.5 Tha 15.5 oO l6.¢ 17d 18.¢ 18.2: 20.b oA 21.b 2a 23.b 24d 2.6 26.6 27.b 28.d 29.6 30. 3a 32.4 33. 34.b ®