Negotiable Instruments Act - Practice Test

[#196] In case presentation of instrument for acceptance or payment is delayed, . . . . . . .

(A) The responsibility of all the parties thereto end

(B) It becomes ineligible for payment

(C) The delay can be excused if it is caused by circumstances outside the control of the holder and not because of his negligence, default or misconduct

(D) The delay can be excused if it is caused by circumstances outside the control of the holder, or due to his negligence, but not if caused due to default or misconduct

Correct Answer

(C) The delay can be excused if it is caused by circumstances outside the control of the holder and not because of his negligence, default or misconduct

[#197] Which of the following is not a justified ground of dishonouring of cheque by banker?

(A) The cheque is post-dated and presented before the ostensible date

(B) The banker had sufficient funds, but the funds are not properly applicable towards the payment of the cheque

(C) If the cheque is altered in parts

(D) If the cheque is duly presented

Correct Answer

(D) If the cheque is duly presented

[#198] Amendment in Negotiable Instruments Act, 1881 made in 1988 has introduced an important provision relating to:

(A) Easy negotiability

(B) Dishonour of cheque

(C) Bank draft

(D) Privileges of holder in due course

Correct Answer

(B) Dishonour of cheque

[#199] For what term of imprisonment an offender under section 138 of the Negotiable Instruments Act can be punished

(A) For a term which may extend to two years

(B) For a term which may extend to one year

(C) For a term exceeding three years

(D) None of the above

Correct Answer

(A) For a term which may extend to two years

[#200] No one other than RBI and Central Government can make a Promissory note payable to bearer.

(A) True

(B) False

(C) Partly true

(D) Partly false

Correct Answer

(A) True

Negotiable Instruments Act - Study Mode

[#196] In case presentation of instrument for acceptance or payment is delayed, . . . . . . .

Correct Answer

[#197] Which of the following is not a justified ground of dishonouring of cheque by banker?

Correct Answer

[#198] Amendment in Negotiable Instruments Act, 1881 made in 1988 has introduced an important provision relating to:

Correct Answer

[#199] For what term of imprisonment an offender under section 138 of the Negotiable Instruments Act can be punished

Correct Answer

[#200] No one other than RBI and Central Government can make a Promissory note payable to bearer.

Correct Answer