LL.B. (Three Years) Sem 6 Law of Banking and Negotiable Instruments 2021-22 Question Paper - Mumbai University | munotes

Questions asked in this paper

MCQ Multiple choice questions

1. 1 A promissory note is required to be signed by the ______. (a) drawer (b) drawee (c) holder (d) maker
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2. 2 The amount payable in a negotiable instrument must be ______. (a) certain (b) conditional (c) uncertain (d) with interest
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3. 3 The term "negotiable" in a negotiable instrument means ______. (a) written (b) transferable (c) certain (d) uncertain
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4. 4 A Promissory Note contains ______ promise to pay. (a) express (b) implied (c) uncertain (d) conditional
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5. 5 A cheque does not require ______. (a) signature (b) acceptance (c) indorsement (d) consideration
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6. 6 The ______ is called as acceptor when he accepts the bill. (a) drawer (b) drawee (c) holder (d) payee
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7. 7 Noting is not required for ______. (a) promissory note (b) bill of exchange (c) cheque (d) foreign bill
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8. 8 The drawee banker is liable to the ______ for wrongful dishonour of cheque. (a) drawer (b) holder (c) payee (d) indorser
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9. 9 The holder in due course acquires the instrument ______. (a) without consideration (b) after maturity (c) for consideration (d) by theft
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10. 10 When no time for payment has been specified in the instrument, the instrument is payable ______. (a) after a reasonable time (b) on a public holiday (c) on demand (d) to the bearer
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11. 11 A promissory note made payable to the ______ is a nullity. (a) maker (b) holder (c) drawee (d) payee
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12. 12 Crossing provides more ______ to the cheque. (a) Security (b) time (c) features (d) trust
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13. 13 Account payee crossing is also called as ______ crossing. (a) General (b) Special (c) Restrictive (d) Invalid
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14. 14 Every ______ is presumed to be a holder in due course. (a) Maker (b) Holder (c) Drawer (d) Drawee
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15. 15 The term of office of a member of a local board is ______ years. (a) Four (b) Five (c) Six (d) Eight
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16. 16 The instrument must be presented for payment ______. (a) on a holiday (b) on a Working day (c) before maturity (d) to the holder
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17. 17 ______ can be dishonoured by non acceptance. (a) promissory note (b) bill of exchange (c) cheque (d) promissory note payable at sight
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18. 18 The person who draws a cheque is called the ______. (a) drawer (b) drawee (c) banker (d) payee
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19. 19 A banking company can not create charge on its ______. (a) paid up capital (b) unpaid capital (c) assets (d) deposits
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20. 20 The indorser excludes his liability in ______ indorsement. (a) blank (b) full (c) restrictive (d) sans recourse
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SAQ Short answer questions

1. 1 Define "Bill of Exchange".
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2. 2 Write the meaning and effect of "Blank Indorsement".
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3. 3 What is the mode of proof of entries in the Bankers' Books?
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4. 4 Write any three businesses in which banking companies may engage.
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5. 5 Explain the meaning of Negotiable Instruments.
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6. 6 What is "accommodation bill"?
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7. 7 What is an "ambiguous instrument"?
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8. 8 What do you mean by "instruments negotiable by statute" and "instruments negotiable by custom"?
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9. 9 What is "noting"?
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10. 10 What is "Banking Policy" under the Banking Regulation Act?
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