1. Who is primarily liable on a cheque?
(a) Drawer
(b) Paying banker
(c) Collection banker
(d) Everybody who touches the cheque
(e) None
2.The effect of a crossing a cheque is
(a) The payee can obtain payment only through a bank account
(b) The payee Is compelled to open an account
(c) The payee will have to endorse the cheque to a bank
(d) None
(e) All
3.A cheque crossed as ‘Payees a/c only” is direction to
(a) The payee not to negotiate the cheque
(b) The paying banker to ensure that the proceeds of the cheque are credited to the payees a/c only.
(c) The collecting banker to ensure that the proceeds of the cheques are collected for the account of the payee only
(d) None of the above
(e) All of the above
4.The provisions contained in section 138 of the negotiable instruments act 1881 shall
(a) be attracted whether the cheques is ante-dated or post-dated provided it is presented within 3 months of the date of cheques or the period of validity, whichever, is earlier
(b) not be attracted if the cheques is ante-dated
(c) not be attracted if the cheques is post-dated
(d) all of the above
(e) (b) and (c)
5.Which of the following does not constitute ‘payment in due course’?
(a) Payment of a post-dated cheque
(b) Payment of a crossed cheque across the counter
(c) Payment of a cheques the payment of which has been countermanded
(d) All of the above
(e) None of these
6.Truncation of cheques means
(a) scanning of the cheques and transmission of electronic image instead of physical cheque in the clearing cycle
(b) debiting of drawer’s account through internet
(c) Both of the above
(d) none of the above
(e) (a) or (b)
7. Who can file a criminal case against the drawer of a dishonoured cheque?
(a) The payee
(b) The holder in due course
(c) Both of the above
(d) The paying banker
(e) none
8. The drawer of a cheque is always a
(a) bank
(b) company
(c) Firm
(d) customer
(e) none
9. A cheque is considered as stale when if has been in circulation for
(a) more than forty eight hours
(b) more than one year
(c) more than six months unless otherwise specified
(d) more than three months
(e) none
10.Where the signature of the drawer of a cheque is not genuine , such a cheque is called
(a) post dated cheque
(b) stale cheque
(c) forged cheque
(d) all
(e) none
Answers :
1) a
2) a
3) c
4) a
5) d
6) a
7) c
8) d
9) d
10) c
