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

Questions asked in this paper

SECTION I - Multiple choice questions

1. Q1 A promissory note is required to be signed by the ______. (a) drawer (b) drawee (c) holder (d) maker
2. Q2 The amount payable in a negotiable instrument must be ______. (a) certain (b) conditional (c) uncertain (d) with interest
3. Q3 The term "negotiable" in a negotiable instrument means ______. (a) written (b) transferable (c) certain (d) uncertain
4. Q4 A Promissory Note contains ______ promise to pay. (a) express (b) implied (c) uncertain (d) conditional
5. Q5 A cheque does not require ______. (a) signature (b) acceptance (c) indorsement (d) consideration
6. Q6 The ______ is called as acceptor when he accepts the bill. (a) drawer (b) drawee (c) holder (d) payee
7. Q7 Noting is not required for ______. (a) promissory note (b) bill of exchange (c) cheque (d) foreign bill
8. Q8 The drawee banker is liable to the ______ for wrongful dishonour of cheque. (a) drawer (b) holder (c) payee (d) indorser
9. Q9 The holder in due course acquires the instrument ______. (a) without consideration (b) after maturity (c) for consideration (d) by theft
10. Q10 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
11. Q11 A promissory note made payable to the ______ is a nullity. (a) maker (b) holder (c) drawee (d) payee
12. Q12 Crossing provides more ______ to the cheque. (a) Security (b) time (c) features (d) trust
13. Q13 Account payee crossing is also called as ______ crossing. (a) General (b) Special (c) Restrictive (d) Invalid
14. Q14 Every ______ is presumed to be a holder in due course. (a) Maker (b) Holder (c) Drawer (d) Drawee
15. Q15 The term of office of a member of a local board is ______ years. (a) Four (b) Five (c) Six (d) Eight
16. Q16 The instrument must be presented for payment ______. (a) on a holiday (b) on a Working day (c) before maturity (d) to the holder
17. Q17 ______ can be dishonoured by non acceptance. (a) promissory note (b) bill of exchange (c) cheque (d) promissory note payable at sight
18. Q18 The person who draws a cheque is called the ______. (a) drawer (b) drawee (c) banker (d) payee
19. Q19 A banking company can not create charge on its ______. (a) paid up capital (b) unpaid capital (c) assets (d) deposits
20. Q20 The indorser excludes his liability in ______ indorsement. (a) blank (b) full (c) restrictive (d) sans recourse

SECTION II - Short answer questions

1. Q21 Define "Bill of Exchange".
2. Q22 Write the meaning and effect of "Blank Indorsement".
3. Q23 What is the mode of proof of entries in the Bankers' Books?
4. Q24 Write any three businesses in which banking companies may engage.
5. Q25 Explain the meaning of Negotiable Instruments.
6. Q26 What is "accommodation bill"?
7. Q27 What is an "ambiguous instrument"?
8. Q28 What do you mean by "instruments negotiable by statute" and "instruments negotiable by custom"?
9. Q29 What is "noting"?
10. Q30 What is "Banking Policy" under the Banking Regulation Act?

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