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1. 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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2. 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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3. The number of parties to a Promissory Note is
A. 2 B. 4
C. 6 D. 3
Your answer is: A. 2

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4. 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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5. A holder in due course will get protected from earlier defect of
A. no consideration B. conditional delivery
C. unlawful means D. all of the above
Your answer is: D. all of the above

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6. 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: C. Section 147

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7. 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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8. 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: B. Post dated cheque

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9. 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: C. 45 days
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10. 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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11. 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: A. owner

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12. 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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13. ...cannot be a bearer instrument
A. Promissory Note B. Bill of exchange
C. cheque D. none of the above
Your answer is: D. none of the above

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14. Countermanding of a cheque is also known as
A. cancellation B. dishonor
C. stop payment D. payment through counter
Your answer is: C. stop payment

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15. 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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16. When the loss of cheque is intimated to the Bank, it is advisable to get the cheque
A. dishonored B. cancelled
C. stalled D. countermanded
Your answer is: D. countermanded

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17. What is the time period to present a cheque?
A. 2 months B. 6 months
C. 3 months D. 12 months
Your answer is: C. 3 months

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

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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: A. Instrument
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20. 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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21. 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: C. both 1 & 2

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22. 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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23. section 5 of NI Act deals with
A. Promissory Note B. Bill of exchange
C. cheque D. none of the above
Your answer is: D. none of the above

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

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25. means something legally transferable from on eperson to another for a consideration.
A. Instrument B. Negotiable
C. Negotiable Instruments D. all of the above
Your answer is: C. Negotiable Instruments