Deck 7: Cheques and Banking Procedures

Question 1

If a cheque is refused by the State Bank of India (SBI) due to inadequacy of funds for the cheque to clear, then it is said to be

A)Bounced cheque
B)Cancelled cheque
C)Either a or b
D)Both a and b

Answer 1

Bounced cheque

Question 2

If the words "not negotiable" are used with special crossing in a cheque, the cheque is

A)Not transferable
B)Transferable
C)Negotiable under certain circumstances
D)None of the above

Answer 2

Not transferable

Question 3

Crossing of a cheque effects the

A)Negotiability of the cheque
B)Mode of payment on the cheque
C)Both (a) and (b)
D)None of the above

Answer 3

Both (a) and (b)

Question 4

Notice of dishonour must be given

A)To the drawer and drawee only
B)To the drawer, acceptor and endorser(s) only
C)To all the parties liable on the instrument or to their duly authorized agent
D)To all the parties who are secondarily liable on the instrument or to their duly authorized agent

Question 5

Presentation is required for

A)Acceptance
B)Sight
C)Payment
D)Any of the above three purposes

Question 6

A minor cannot be a______________ of the instrument

A)Drawer
B)Drawee
C)Payee
D)Acceptor

Question 7

Presentment of an acceptance is required in case of

A)Every Bill of exchange
B)Every Bill of exchange payable after sight
C)Every promissory note
D)Every cheque

Question 8

A drawee is need to be given a deliberation of

A)24 hrs
B)48 hrs
C)72hrs
D)10 days