Question 1

The endorser will not liable to the holder on dishonor of a negotiable instrument if he makes

Accepted Answer

A) sans-recourse endorsement 
B) facultative endorsement 
C) sans-frais endorsement 
D) none of the above

Question 2

Lien becomes time-barred three years after

Accepted Answer

A) the date of loan 
B) date of delivery o the relative goods 
C) due date of loan 
D) lien has no limitation period

Question 3

After a customer has closed the account______

Accepted Answer

A) the banker is no more liable to observe secrecy of his account because the contractual relationship comes to an end 
B) the banker is still bound by his duty of secrecy 
C) the banker's duty of secrecy comes to an e 
D) in terms of the provisions of the negotiable instrument act, 1881

Question 4

Working Capital Gap means-

Accepted Answer

A) total current assets minus total current liabilities 
B) total assets minus intangible assets 
C) total liabilities minus terms liabilities. 
D) total current assets minus current liabilities (other than bank

Question 5

Section 85(1) of the Negotiable Instrument Act 1881 provides protection to the paying banker in respect of

Accepted Answer

A) forged endorsement 
B) material alterations on the face of the cheque 
C) forgery of drawer's signature 
D) all of these

Exam 3: Banking and Negotiable Instrument

The endorser will not liable to the holder on dishonor of a negotiable instrument if he makes

Lien becomes time-barred three years after

After a customer has closed the account______

Working Capital Gap means-

Section 85(1) of the Negotiable Instrument Act 1881 provides protection to the paying banker in respect of