Mcq civil minor act

1. Ahmednagar Jilla Maratha Vidya Prasarak Samaj’s
New Law College, Ahmednagar
LL.B.-II (2017 Pattern)
LO 0808 CIVIL MINOR ACTS
1. For the purpose of The Interest Act, 1978, ‘court’ includes
a. Tribunal
b. Arbitrator
c. Both of the above
d. None of the above
2. A Promise to pay B Rs. 5000 after 10 days of marriage with C. it is a
a. Promissory note
b. Bill of exchange
c. Cheque
d. None of the above
3. In The Interest Act, 1978, power of court to allow interest is provided in
a. Section 2
b. Section 3
c. Section 4
d. Section 5
4. Promissory note does not includes
a. Bank Note
b. Currency Note
c. Both of above
d. None of the above
5. In The Interest Act, 1978, whether the court allows interest on interest.
a. Court is not empowered
b. Court is empowered
c. It depends on discretion of court
d. Court shall allow interest on interest
6. Section 34 of Code of Civil Procedure, 1908 provides for
a. Penalty

2. b. Cost
c. Interest
d. All of the Above
7. Which section of Negotiable Instrument Act deals with presumption as to
Negotiable Instrument
a. Section 116
b. Section 117
c. Section 118
d. Section 119
8. If minor draws, indorse, delivers and negotiates a Negotiable Instrument,
this binds
a. All parties except minor
b. All parties
c. Minor and drawer
d. Minor and drawee
9. Object of The Interest Act, 1978 is
a. To amend the law relating to allowance of Interest
b. To consolidate the law relating to allowance of Interest
c. To consolidate and amend the law relating to allowance of interest
d. To provide and amend the law relating to allowance of Interest
10.There shall be in each district a District Court presided by
a. District Magistrate
b. District Judge
c. Judicial Magistrate First Class
d. Civil Judge (Senior Division)
11.District Judge shall use a circular Seal, which size is
a. One and half inch in diameter
b. Two inch in diameter
c. Two and half inch in diameter
d. Three inch in diameter
12.The Interim Compensation to the complainant will not exceed
a. 10% of cheque amount
b. 15 % of cheque amount
c. 20% of cheque amount
d. 25% of cheque amount

3. 13.Joint District Judge is appointed by
a. Central Government
b. State Government
c. High Court
d. State Public Service Commission
14.How many classes of ‘Civil Judges’ there shall be, as per Maharashtra Civil
Courts Act
a. Two classes
b. Three classes
c. Four Classes
d. Five Classes
15.When endorser signs his name and adds a direction to pay the amount
mentioned in the instrument to a specified person. This is which kind of
indorsement
a. Indorsement in part
b. Indorsement in blank
c. Indorsement in full
d. Indorsement in direction
16.In suits decided by a Civil Judge, of which the amount of the subject matter
exceeds one crore rupees, appeal shall be to
a. High Court
b. District Judge
c. Civil Judge (Senior Division)
d. District Magistrate
17.Which Section provides for ‘Licensed Petition Writer’ in Maharashtra Civil
Courts Act, 1869.
a. 40
b. 40A
c. 41
d. 41A
18. At Sight in Negotiable Instrument Act means
a. On acceptance
b. On presentment
c. On proposal
d. On demand

4. 19.The High Court may permit the Civil Courts under its control to adjourn for
a period or periods not exceeding in the whole
a. Four weeks in a year
b. Six weeks in a year
c. Eight weeks in a year
d. Ten Weeks in a year
20.The Jurisdiction of Civil Judge (Junior Division) extends to all original Suits
and Proceedings of a civil nature where subject matter does not exceeds
amount or value of
a. Rupees Fifty Thousand
b. Rupees One Lakh
c. Rupees Two Lakh and Fifty Thousand
d. Rupees Five Lakh
21.Before making rules under section 3 of The Suits Valuation Act 1887, by
State Government, consultation of High Court is
a. Mandatory
b. Optional
c. Discretional
d. Not at all required
22.When there different amount stated in words and in figure in Bill of
Exchange, which amount will be undertaken
a. Figure amount
b. Words amount
c. Average of both amount
d. Highest of both amount
23.Part II of The Suits Valuation Act, 1887 shall came into force on
a. 1st
January 1888
b. 1st
March 1887
c. 1st
December 1888
d. 1st
July 1887
24.In Maharashtra Court Fees Act, provisions relating to computation of fees is
provided in
a. Chapter II
b. Chapter III
c. Chapter IV

5. d. Chapter V
25.All fees chargeable under Maharashtra Court Fees Act shall be collected by
a. Stamps
b. E-payments
c. Both of the above
d. none of the above
26.The maturity of a promissory note or bill of exchange is the date at which it
a. Falls due
b. Completes
c. Either complete or becomes due
d. None of the above
27.Who makes rules regarding sale of stamps to be used in Maharashtra Court
Fees Act
a. State Government
b. High Court
c. District Court
d. Collector
28.In Suits for accounts, minimum court fees to be paid is
a. Rs 20/-
b. Rs 50/-
c. Rs 100/-
d. Rs 10/-
29.To constitute an offence under section 138, within how many days the
cheque should be presented to the bank from the dare on which it is drawn
a. 2 month
b. 3 month
c. 4 month
d. 6 month
30.Question as to valuation, for determining the amount of fees payable under
chapter III of Maharashtra Court Fees Act on any plaint or memorandum of
appeal is decided by
a. Court Officer before which such plaint or memorandum is presented
b. State Government
c. Court before which such plaint or memorandum is presented
d. Parties of such plaint or memorandum is presented

6. 31.As per The Maharashtra Stamps Act, 1958 ‘conveyance’ includes
a. Conveyance of sale
b. Every instrument
c. Every decree or final order of court
d. All of the above
32.As per section 147, every offence punishable under the Negotiable
Instrument is
a. Cognizable
b. Compoundable
c. Non Compoundable
d. None of the above
33.Chief Controlling Revenue Authority is defined in which section of The
Maharashtra Stamps Act, 1958
a. Section 2(c)
b. Section 2(dd)
c. Section 2(ga)
d. Section 2(ja)
34.A owes B Rs. 1000/-. A sells a Property to B, the consideration of the
property being Rs. 500/- and the release of the previous debt of Rs. 1000/-.
Stamp duty is payable on
a. Rs. 500/-
b. Rs. 1000/-
c. Rs. 1500/-
d. Rs. 2000/-
35.Presumption as to dishonor of cheque on production of a bank slip is
a. Irrebutable
b. Rebuttable
c. Conclusive Proof
d. No evidenve
36.In The Maharashtra Stamps Act, 1958 Instrument not duly stamped are
a. Admissible as evidence
b. Inadmissible in evidence
c. Admissible as evidence with discretion of parties
d. Not admissible as evidence on part of Plaintiff only

7. 37.Powers exercisable by collector in chapter III, IV and V of The Maharashtra
Stamps Act, 1958 shall be subject to control of
a. Central Government
b. Reserve bank of India
c. Chief Controlling Revenue Authority
d. Securities Exchange Board of India
38.Jurisdiction to try offence relating to dishonor of cheque for insufficient
funds is to
a. District Magistrate
b. District Judge
c. Judicial Magistrate First Class
d. Civil Judge
39.Any person who with intention to evade the duty executes any instrument
shall be punished with
a. Simple Imprisonment
b. Rigorous Imprisonment
c. Simple or Rigorous Imprisonment
d. None of the above
40.In The Maharashtra Stamps Act, 1958 ‘Paper’ includes
a. Vellum
b. Parchment
c. Any material on which instrument may be written
d. All of the above
41.Section 145 of Negotiable Instrument Act deals with
a. Power of Court
b. Evidence on affidavit
c. Mode of service of summons
d. None of the above
42.Allowance for stamps in certain cases are provided in which chapter of In
The Maharashtra Stamps Act, 1958
a. Chapter IV
b. Chapter V
c. Chapter VI
d. Chapter VII
43.When can a will be cancelled

8. a. Within 3 years of registration
b. Within 12 years of registration
c. Within 1 years of registration
d. During lifetime of testator
44.The Registration Act 1908 came into force on
a. 1st
July 1908
b. 1st
December 1908
c. 1st
January 1909
d. 1st
April 1909
45.How many parties are there in a bill of exchange
a. Two parties
b. Three parties
c. One parties
d. None of the above
46.Term movable property in The Registration Act 1908 includes
a. Standing Timber
b. Growing Crops
c. Grass
d. All of the Above
47.Documents which are compulsorily registrable under The Registration Act
1908is provided in
a. Section 12
b. Section 17
c. Section 27
d. Section 49
48.Every documents to be registered under The Registration Act 1908 shall be
presented at
a. Competent Court
b. Proper Notary
c. Tahsildar
d. Proper Registrar office
49.On acceptance of the bill of exchange by the drawee, the liability of drawer
becomes
a. Primary
b. Secondary

9. c. Extinct
d. None of the above
50.Document compulsorily registrable under The Registration Act 1908are
a. Instrument of gift of immovable Property
b. Lease of immovable property for period exceeding one year
c. Non testamentary instrument creating interest worth Rs. 1000/-
d. All of the above
51.Where there are several persons executing a document at different times,
such documents may be presented for registration and re-registration within
what time of each execution
a. Four Month
b. Six Month
c. One year
d. Three years
52.Section 21 of The Registration Act 1908 relates to
a. Non testamentary documents relating to Movable Property
b. Testamentary documents relating to Immovable Property
c. Non testamentary documents relating to Immovable Property
d. Testamentary documents relating to Immovable Property
53.Time for presentation of documents for registration has been provided in
which section of The Registration Act 1908
a. Section 23
b. Section 35
c. Section 18
d. Section 11
54.Where to register any document under The Registration Act 1908
a. With Registrar of sub registrar in sub district where whole property is
situated
b. With Registrar of sub registrar in sub district where part property is
situated
c. Both of the above
d. None of the above
55.Delay in registration of document can be condoned upto
a. One month
b. Two month

10. c. Three month
d. Four month
56.Person exempt from appearance at registration office is provided in which
section of The Registration Act 1908
a. Section 19
b. Section 38
c. Section 51
d. Section 22
57.Doctrine of ‘Relation Back” is provided in which section of The Registration
Act 1908
a. Section 36
b. Section 62
c. Section 47
d. Section 57
58.Importance of Registration of Documents are
a. Prevention of fraud of property
b. It serves as evidence in court
c. Notice to People as to who deal with a property
d. All of the above
59.Section 32A of The Registration Act 1908 provides mandatory fixation of
a. Passport size Photograph
b. Finger Prints
c. Both of the above
d. None of the above
60.Cheque is a
a. Promissory Note
b. Bill of Exchange
c. Both of above
d. None of the above

11. ICAI Study Material MCQs
1. Person named in the instrument to whom money is directed to be paid is known as .
a) Drawer
b) Acceptor
c) Maker
d) Payee
2. Maker of a bill of exchange is called as
a) Drawer
b) Drawee
c) Acceptor
d) Payee
3. Days of grace provided to the Instruments at maturity is
a) 1 day
b) 2 days
c) 3 days
d) 5 days
4. Parties to a negotiable instrument can be discharged from liability by
a) Cancellation
b) Payment
c) Release
d) All of the above
5. Validity period for the presentment of cheque in bank is
a) 3 months
b) 6 months
c) 1 year
d) 2 years
6. Offences committed under the Negotiable Instruments Act can be
a) Compoundable
b) Non-compoundable
c) Non-compoundable and non-bailable
d) Bailable
7. A negotiable instrument that is payable to order can be transferred by:
a) Simple delivery
b) endorsement and delivery
c) endorsement
d) registered post
8. A negotiable instrument drawn in favour of minor is

12. a) Void
b) Void but enforceable
c) Valid
d) None of these
9. Which of the following is not applicable to negotiable instruments?
a) It must be in writing
b) It must be transferable
c) It must be registered
d) It must be signed
10. ‘A’ signs the instrument in the following manner. State the instrument which cannot be considered as promissory
note.
a) I promise to pay B or order INR 500.
b) I acknowledge myself to be indebted to B for INR 1,000 to be paid on demand for value received.
c) I promise to pay B INR 10,000 after three months.
d) I promise to pay B INR 500 seven days after my marriage with C.
11. A promissory note drawn jointly by X, a minor and Y, a major is:
a) Void
b) Valid but not negotiable
c) Valid but can be enforced only against Y
d) None of the above
12. In legal terms, person who takes the instruments bonafide for value before it is overdue, in good faith, is known
as:
a) Holder in due course
b) Holder
c) Holder for value
d) None of the above
13. P obtains a cheque drawn by M by way of gift. Here P is a:
a) Holder in due course
b) Holder for value
c) Holder
d) None of the above
14. As per the Negotiable Instruments Act, 1881, when the day on which a promissory note or bill of exchange is at
maturity is a public holiday, the instrument shall be deemed to be due on the …….……..
a) said public holiday
b) 5 days succeeding public holiday

13. c) next succeeding business day
d) next preceding business day
15. Person named in the instrument to whom money is directed to be paid:
a) Drawer
b) Acceptor
c) Maker
d) Payee
16. A draws a cheque in favour of M, a minor. M endorses the same in favour of X. The cheque is dishonoured by
the bank on grounds of inadequate funds. As per the provisions of Negotiable Instruments Act, 1881:
a) M is liable to X
b) X can proceed against A
c) No one is liable in this case
d) M can proceed against A
17. While drawing a bill of exchange, a person whose name is given in addition to the drawee who can be resorted
in case of need, is called .
a. Acceptor
b. Acceptor for honour
c. Drawee in case of need
d. Drawer
18. A draws a bill on B. B accepts the bill without any consideration. The bill is transferred to C without
consideration. C transferred it to D for value. Decide as per provisions of Negotiable Instruments Act, 1881-
a. D can sue only A
b. D can sue A or B only
c. D can sue any of the parties A, B or C
d. D cannot sue any of the parties A, B or C
19. The date of maturity of a bill payable hundred days after sight and which is presented for sight on 4th May, 2017,
is (as per the provisions of the Negotiable Instruments Act, 1881):
a. 13 August, 2017
b. 14 August, 2017
c. 15 August, 2017
d. 16 August, 2017
20. A draws a bill on B for INR 500 payable to the order of A. B accepts the bill, but subsequently dishonour it by
non – payment. A sues B on the bill but B proves that it was accepted for value as to INR 400, and as an
accommodation to the plaintiff as to the residue. Thus, as per the provisions of the Negotiable Instruments Act,
1881, A can only recover the following amount:
a. 900

14. b. 500
c. 400
d. 100
21. An instrument containing a promise to is valid promissory note.
a. Pay Rs. 10 lakhs
b. Deliver certain goods
c. Pay Rs. 10 lakh and deliver certain goods
d. Both (a) and (c)
22. In case on an accepted bill, the liability of drawer is
a. Primary and unconditional
b. Primary and conditional
c. Secondary and conditional
d. Secondary and unconditional
23. Until the bill is accepted, the liability of drawer is .
a. Primary and unconditional
b. Primary and conditional
c. Secondary and conditional
d. Secondary and unconditional
24. Until the bill is accepted, the liability of drawee is .
a. Primary and unconditional
b. Primary and conditional
c. Secondary and conditional
d. None of these
25. In case of an accepted bill, the liability of drawee is
a. Primary and unconditional
b. Primary and conditional
c. Secondary and conditional
d. None of these
26. In case of cheque, the liability of drawer is .
a. Primary and unconditional
b. Primary and conditional
c. Secondary and conditional
d. Secondary and unconditional

15. 27. A truncated cheque means a cheque which is truncated during the course of clearing cycle by
a. The clearing house
b. The paying Banker
c. The collecting banker
d. Any of these
28. A cheque is
a. A demand instruction
b. A time instrument
c. Either (a) or (b), as per facts of the case
d. None of these
29. The drawee of a bill of exchange, may accept it by signing on
a. The face of the bill
b. The face or back of the bill
c. A slip of paper annexed to the bill
d. Any of these
30. is a negotiable instrument.
a) A promissory note
b) A bill of exchange
c) A cheque
d) All of these
31. Every negotiable instrument shall be –
a. In writing
b. Registered
c. Stamped
d. All of these
32. A negotiable instrument shall be payable to is an order instrument
a) A particular person
b) A particular person or his order
c) The order of a particular person
d) All of these
33. Bearer instrument means an instrument
a. Which is expressed to be payable to bearer
b. On which the last endorsement is in blank
c. Either (a) or (b)

16. d. None of these
34. Every negotiable instrument shall be
a. Either a demand instrument or a time instrument
b. Either a bearer instrument or an order instrument
c. Both (a) and (b)
d. None of these
35. does not require payment of stamp duty
a. Assignment
b. Negotiation
c. Making of a promissory note
d. All of these
36. Endorsement means signing on for the purpose of negotiating such negotiable instrument.
a. The face of negotiable instrument
b. The back of negotiable instrument
c. A slip of paper annexed to negotiable instrument
d. Any of these
37. Where the endorsement contains a direction to pay the amount mentioned in the negotiable instrument to a
specified person, it is called as
a. Restrictive endorsement
b. Special endorsement
c. Facultative endorsement
d. Sans Frais endorsement
38. may be presented for payment at any time
a. A demand instrument
b. A time instrument
c. Both (a) and (b)
d. None of these
39. In a promissory note or a bill of exchange, the expressions ‘at sight’ means
a. ‘On presentation’
b. ‘On demand’
c. Both (a) and (b)
d. None of these
40. In a promissory note, the expression ‘after sight’ means

17. a. After acceptance
b. After presentment for sight
c. Both (a) and (b)
d. None of these
41. Statement (1): A negotiable instrument which is payable otherwise than on demand is not entitled to any days
of grace.
Statement (2): A negotiable instrument which is payable on demand is entitled to 3 days of grace.
a. Only statement (1) is correct
b. Only statement (2) is correct
c. Both the statements are correct
d. None of the statements is correct
42. is not entitled to any days of grace.
a. A demand instrument
b. A time instrument
c. Either (a) or (b), as per the facts of the case
d. None of these
43. A promissory note in which the maker is a minor
a. Is valid
b. Cannot be enforced against the minor
c. Can be enforced against all parties, other than the minor
d. All of these
44. As per section 31 or RBI Act, 1934, cannot be made payable to bearer and cannot
be made payable to bearer on demand.
a. A promissory note; a bill of exchange
b. A bill of exchange; a promissory note
c. A promissory note; a cheque
d. A bill of exchange; a cheque
45. A bearer instrument can be negotiated by
a. Endorsement
b. Delivery
c. Both (a) and (b)
d. Either (a) or (b)
46. Notice of negotiation is
a. Required to be given to all the prior parties

18. b. Required to be given to the party primarily liable
c. Not required to be given to any party
d. None of these
47. Where an endorser makes his liability dependent upon happening of a specified event, although such event may
never happen, it is called as endorsement, and such endorsement is
a. Qualified, valid
b. Contingent, valid
c. Qualified, not valid
d. Contingent, not valid
48. If a person, after making, but before making its delivery, dies, and afterwards, the delivery is made by the legal
representative of the deceased, it in a valid negotiation.
a. Results
b. Does not result
c. May or may not
d. None of these
49. A negotiable instrument confers upon a valid title notwithstanding any defect in the title of any
prior party.
a. A holder
b. A holder for consideration
c. A holder in due course
d. All of these
50. A negotiable instrument may be negotiated until
a. Maturity date
b. Due date
c. It is paid or satisfied
d. None of these
51. Where a promissory note is payable and is at a specified place, no
presentation is necessary in order to charge the maker thereof.
a. On demand, not payable
b. On demand, payable
c. Otherwise than on demand, not payable
d. Otherwise than on demand, payable
52. In case of any reasonable suspicion about the genuineness of an electronic image of truncated cheque,
is entitled to demand any further information regarding the truncated cheque and demand the
presentation of truncated cheque itself for verification.

19. a. The clearing house
b. The paying banker
c. The collecting banker
d. Any of these
53. A cheque must, in order to charge any person except drawer, be presented within after delivery
thereof by such person
a. 6 months
b. 3 months
c. 1 month
d. A reasonable time
54. Where the drawee agrees to make the payment at a time other than the time stated in the bill, it
a. Is general acceptance
b. Is qualified acceptance
c. Results in discharge of all the prior parties
d. Both (b) and (c)
55. If a blank endorsement is converted into an endorsement in full, are discharged
a. All the prior parties to the negotiable instrument not consenting to the same
b. All the prior parties to the negotiable instrument same
c. All the parties primarily liable
d. None of these
56. Statement (1): Conversion of a bearer instrument into an order instrument by deleting the word ‘bearer’ is a
material alteration.
Statement (2): Conversion of a bearer instrument into an order instrument by deleting the word ‘bearer’ is
authorized by the Act.
Statement (3): Where the bearer instrument is converted into an order instrument by deleting the word
‘bearer’ all the parties to the negotiable instrument not consenting to the same are discharged.
a. Statement (1) and (2) are correct
b. Statement (1) and (3) are correct
c. Statement (2) and (3) are correct
d. All the statements are correct
57. Where a bill is not accepted by the drawee within of presentment of bill, it is dishonoured by
non-acceptance.
a. 24 hours
b. 48 hours
c. 3 days
d. A reasonable time

20. 58. cannot be dishonoured by non-acceptance
a. A promissory note or a cheque
b. A promissory note or a bill of exchange
c. A bill of exchange or a cheque
d. None of these
59. When a promissory note or a bill of exchange has been dishonoured by non-acceptance or non-payment, the
holder may, within , cause such dishonour to be noted and certified by notary public.
a. 24 hours
b. 48 hours
c. 3 days
d. A reasonable time
60. The payer for honour is entitled to recover all the sums paid by him from
a. The party for whose honour he pays
b. All the parties prior to the party for whose honour he pays
c. Both (a) and (b)
d. All party primarily liable on the negotiable instrument
61. Statement (1): It is presumption of law that every negotiable instrument bearing a date was made or drawn
on such date.
Statement (2): It is presumption of law that every lost promissory note or bill was duly stamped.
a. Only statement (1) is correct
b. Only statement (2) is correct
c. Both the statements are correct
d. None of the statements is correct
62. Statement (1): It is presumption of law that every holder of a negotiable instrument is a holder in due course
Statement (2): It may be proved before the court that a holder of negotiable instrument is not a holder in due
course.
a. Only statement (1) is correct
b. Only statement (2) is correct
c. Both the statements are correct
d. None of the statements is correct
63. can be crossed
a. A promissory note
b. A bill of exchange
c. A cheque
d. All of these
64. Statement (1): Where the cheque contains the name of a banker, but does not contain two parallel transverse

21. lines, it is a valid special crossing.
Statement (2): A specially crossed cheque shall be paid to the banker to whom it is crossed.
a. Only statement (1) is correct
b. Only statement (2) is correct
c. Both the statements are correct
d. None of the statements is correct
65. shall verify the due diligence and ordinary care of prima facie genuineness of the cheque to be
truncated and whether any fraud, forgery or tampering is apparent on the face of the instrument.
a. The clearing house
b. The paying banker
c. The collecting banker
d. Any of these
66. can be drawn in sets
a. A promissory note
b. A bill of exchange
c. A cheque
d. All of these
67. Where the endorser relieves himself from any liability with respect to any expenses that may be incurred in case
of dishonour of the negotiable instrument, it is called as
a. Restrictive endorsement
b. Special endorsement
c. Facultative endorsement
d. Sans Frais endorsement
68. Where the endorser waives any of his rights, it is called as
a. Restrictive endorsement
b. Special endorsement
c. Facultative endorsement
d. Sans Frais endorsement
69. Where the endorser relieves himself from any liability to all subsequent endorsees, it is called as
a. Restrictive endorsement
b. Sans Recourse endorsement
c. Facultative endorsement
d. Sans Frais endorsement
70. Which of the following is not a valid endorsement?
a. Restrictive endorsement

22. b. Partial endorsement
c. Facultative endorsement
d. Contingent endorsement
71. In case of dishonour, the payee/holder must give a notice to the drawer of the cheque within days
a. 15 days
b. 30 days
c. 45 days
d. 60 days
72. The Court trying an offence under section 138 may order the drawer of the cheque to pay interim compensation
to the complainant which shall not exceed of the amount of the cheque.
a. Ten per cent
b. Twenty per cent
c. Thirty per cent
d. Forty per cent
73. The interim compensation shall be paid within from the date of the order or within such
further period not exceeding as may be directed by the Court on sufficient cause being shown by
the drawer of the cheque.
a. sixty days; thirty days
b. sixty days; sixty days
c. thirty days; thirty days
d. thirty days; sixty days
74. In an appeal by the drawer against conviction under section 138, the Appellate Court may order the appellant to
deposit such sum which shall be a minimum of of the fine or compensation awarded by the Trial
Court within from the date of the order, or within such further period not exceeding as
may be directed by the Court on sufficient cause being shown by the appellant.
a. Ten percent; sixty days; thirty days
b. Twenty percent; sixty days; thirty days
c. Twenty percent; thirty days; thirty days
d. Twenty percent; sixty days; sixty days

23. 1. A promissory note, bill of exchange or cheque payable either to order or to bearer is called – Negotiable Instrument
2. How many total sections are there in the Negotiable Instruments Act? – 147
3. Which section of Negotiable Instruments Act deals with Promissory Note? – Section 4
4. In which section bill of exchange is dealt with in Negotiable Instruments Act? – Section 5
5. What does Section 6 deals with in Negotiable Instruments Act? – Cheque
6. Which section in Negotiable Instruments Act deals with Negotiable Instruments? – Section 13
7. Drawee is defined in which section of Negotiable Instruments Act? – Section 7
8. Which section of Negotiable Instruments Act deals with Dishonour by non-payment? – Section 92
9. Which section of Negotiable Instruments Act deals with Cheque crossed generally? – Section 123
10. Which section of Negotiable Instruments Act deals with Presumptions as to Negotiable Instruments? – Section 118
11. Which section of Negotiable Instruments Act deals with Dishonouring of Cheque? – Section 138
12. What type of negotiable instrument is a currency note? – Money is Not a Negotiable Instrument
13. An order in writing directing a person to pay a sum of money to a specified person is called . – Bill of Exchange
14. A bill of exchange drawn on a specified banker, and not expressed to be payable otherwise than on demand is called
. – Cheque
How many type of cheques are there as per the Negotiable Instruments Act? – 4 (Open cheque, Crossed cheque,Bearer cheque,
Order cheque)
1) Which of the following section in Negotiable Instruments Act deals with the Bill of Exchange?
A. Section 5
B. Section 6
C. Section 4
D. Section 13
E. Section 8
2) Which of the followings are not the Negotiable Instruments as defined by the Statute...
A. Banker’s Note
B. Promissory Note
C. Bill of Exchange
D. Cheques
E. All of the Instruments are Negotiable Instruments
3) Which of the following is/are true about Negotiable Instruments Act, the Promissory Note is …
(I) Definition of Promissory Note is given in section 8 of Negotiable Instrument Act
(II) Containing an unconditional undertaking
(III) To pay a certain sum of money only to a specific person or the bearer
(IV) The seller is bound to accept the promissory note
(V) A document written and Signed by the payer/maker
A. (I), (II) and (III)
B. (II), (III) and (V)
C. (II), (III), and (IV)
D. (I), (III) and (IV)
E. All of the above

24. 4) Dishonor of Negotiable Instrument by Non Payment is covered under section in Negotiable Instrument
Act 1882…
A. Section 90
B. Section 91
C. Section 92
D. Section 93
E. Section 94
5) The Negotiable Instruments (Amendment) Bill, 2017 inserted a provision allowing a court trying an
offence related to cheque bouncing, to direct the drawer (person who writes the cheque) to pay interim
compensation to the complainant. The interim compensation will not exceed % of the cheque amount ?
A. 15%
B. 25%
C. 30%
D. 33%
E. 20%
6) Which of the following is/are true about Bill of Exchange ?
(I) A bill of exchange requires in its inception two parties.
(II) A bill of exchange or "draft" is a written order by the drawer to the drawee to pay money to the payee.
(III) Bills of exchange are used primarily in international trade, and are written orders by one person to his
bank to pay the bearer a specific sum on a specific date.
(IV) Definition of ‘ Bill of Exchange’ is mentioned in the Section 6 of Negotiable Instrument Act.
A. (I) and (IV)
B. (I), (II) and (IV)
C. (II) and (III)
D. (III) and (IV)
E. All of the Above
(7) If the holder of a bill of exchange allows the drawee more than hours, exclusive of public holidays,
to consider whether he will accept the same, all previous parties not consenting to such allowance are thereby
discharge from liability to such holder.
A. 24
B. 12
C. 36
D. 48
E. 60
(8) Section 6 of Negotiable Instruments Act defines
A. Cheque
B. Bill of Exchange
C. Promissory Notes
D. Dishonour by non-payment
E. Dishonour by non-acceptance

25. (9) If a Minor draw, indorse, deliver and negotiate Negotiable Instruments, it binds
A. All the parties except minor
B. All the parties including minor
C. Minor Only
D. Minor and Only Drawer
E. Minor and the Drawee
(10) Which of the following is/are false about Dishonour of Cheque ?
(I) Section 138 defines Dishonour of cheque for insufficiency, etc., of funds in the account.
(II) Such cheque has been presented to the bank within a period of twelve months from the date on which it
is drawn or within the period of its validity, whichever is earlier
(III) Imprisonment for such offence may be extended for period of five year
(IV) Section 138 apply unless - the drawer of such cheque fails to make the payment of the said amount of
money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the
receipt of the said notice.
A. (I) and (IV)
B. (II) and (III)
C. (II),(III) and (IV)
D. Only (IV)
E. Only (III)

26. 1. The Court Fees Act, was enacted on
A. 11th March, 1870 B. 11th April, 1870
C. 11th June, 1870
Answer & Explanation
Answer: Option A
Explanation:
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2. The Court Fees Act of 1970 was enforced on
A. 1st March 1970 B. 11th March, 1970
C. 1st April, 1970
Answer & Explanation
Answer: Option C
Explanation:
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3. The Court Fees Act of 1870 consist of_____ sections
A. 30 B. 36
C. 42
Answer & Explanation
Answer: Option B
Explanation:
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4. The Court Fees Act, of 1870 consists_____ Schedule
A. 1 B. 2
C. None of the above
Answer & Explanation
Answer: Option C
Explanation:
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5. The object of formation or enactment of the Court Fees Act, of 1870 is
A. To create technicalities for litigants B. To collect revenue for State
C. To put burden upon litigants
Answer & Explanation
Answer: Option B
Explanation:

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6. The Courts Fees Act, of 1870 is
A. Fiscal statute B. Technical statute
C. Corrobortive statute
Answer & Explanation
Answer: Option A
Explanation:
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7. Court fees is essentially matter
A. Between litigants B. State and litigant
C. Court and litigants
Answer & Explanation
Answer: Option C
Explanation:
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8. Ascertainment of Court fee is duty of the
A. Government B. Court
C. Litigant
Answer & Explanation
Answer: Option B
Explanation:
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9. The Court Fees Act, 1870 contains
A. No schedule B. No preamble
C. Both (a) and (b)
Answer & Explanation
Answer: Option C
Explanation:
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10. Section 3, of the Court Fees Act of 1870 deals with
A. Levy of Court fees in Court of Civil Judge in their ordinary jurisdiction B. Levy of
Court fees in District Judge Court
C. Levy of Court Fees in High Court in their extra ordinary jurisdiction
Answer & Explanation
Answer: Option C

28. 11. As per section 5, of the Court Fees Act when any difference arises between the officer
whose duty it is to see that any fee is paid under Court Fees Act, 1870 and any suitor or
attorney as to the necessity of paying a fee or amount thereof the question shall be solved by
A. Taxing officer B. Court officer himself
C. None of the above
Answer & Explanation
Answer: Option A
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12. Section_____of the Court Fees Act, 1870 deals with fees on documents filed etc in
Mufasil Courts or in public offices
A. 5 B. 6
C. 7
Answer & Explanation
Answer: Option B
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13. The section dealing with "Computation of Fee" payable in certain suit for money is
A. Section 6, B. Section 7,
C. Section 10,
Answer & Explanation
Answer: Option B
Explanation:
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14. The term "Ad-Valorem Court Fee" used in the Court Fee Act, 1870 denotes
A. According to the aluation of the subject satisfactory ascertainable B. Value of
subject matter to certain conditions
C. None of the above
Answer & Explanation
Answer: Option A
Explanation:
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15. For pre-emption suits value of Court fees would be
A. Five times of the revenue so payable B. Ten times of the revenue so payable
C. None of the above
Answer & Explanation
Answer: Option B
Explanation:

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16. As per section 7(i), in suits for money (including suits for damages or compensation or
arrears of maintenance of annuities or of other sums payable periodically) the Court fees would
be
A. According to the amount claimed B. According Court direction
C. According revenue officers directions
Answer & Explanation
Answer: Option A
Explanation:
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17. In suits for maintenance and annuities or other sums payable periodically according to
the value of the subject-matter of the suit, such value shall be deemed ten times the amount to
be payable
A. For one year B. For two years
C. For three years
Answer & Explanation
Answer: Option A
Explanation:
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18. Section 7(iii) of the Court Fees Act, 1870 deal with.
A. Court fees for movable property having market value B. Court feeds for
movable property having no market value
C. Both (a) and (b)
Answer & Explanation
Answer: Option A
Explanation:
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19. The Court Fees for suits for moveable property of no market values is dealt by section
A. 7 (iv) of the Court Fees Act, 1870 B. 7 (v) of the Court Fees Act, 1870
C. 7 (vi) of the Court Fees Act, 1870
Answer & Explanation
Answer: Option A
Explanation:
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20. The section_____ of Court Fees Act, 1870 deal with Court fees in suits to set aside an
attachment
A. 7(vii) B. 7(viii)

30. C. 7(ix)
Answer & Explanation
Answer: Option B
21. The amount of fee payable under the Court Feeds Act, 1870 on a memorandum of
appeal against an order relating to compensation under any Act for the time being in force for
the acquisition of land for public purposes shall be computed
A. According to the amount awarded B. According to the amount claimed
C. According to the difference between the amount awarded and amount claimed by the
appellant
Answer & Explanation
Answer: Option C
Explanation:
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22. Section (7(v) of the Court Fees Act, deals with
A. Court fees in cases of declaration B. Court fees in pre-emption cases
C. Court fees in cases for possession of land, houses and gardens
Answer & Explanation
Answer: Option C
Explanation:
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23. As per Section 7(x), of Court Fees Act, Court fees in suit for specific performance would
be
A. According to amount of consideration B. According desires of plaintiff
C. Upon discretion of Court
Answer & Explanation
Answer: Option A
Explanation:
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24. Section 9, of the Court Fees Act, empowers to the Court with power to appoint local
commission for
A. Ascertaining net profit or market value of any land garden or house B. Local
investigation as may be necessary
C. Both (a) and (b)
Answer & Explanation
Answer: Option A
Explanation:

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25. Section______ of a Court Fees Act, 1870 deals with procedure where net profit or
market value wrongly estimated
A. 10 B. 11
C. 12
Answer & Explanation
Answer: Option A
Explanation:
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26. In case where plaintiff paid insufficient Court fees the suit shall be stayed until the
additional fee is
A. Paid B. Remit by the Court
C. Paid by the Government
Answer & Explanation
Answer: Option A
Explanation:
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27. When Court orders for additional fee to fulfill the insufficiency within specific time and
plaintiff failed to fulfill in sufficiency the Court shall_____ the suit
A. Adjourn for next date B. Dismissed the suit as provided in section 10(ii)
C. Dismiss
Answer & Explanation
Answer: Option B
Explanation:
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28. Section 11, sub-section 2, of the Court Fees Act, deals with
A. Submittion of extra Court fee B. Submission of less Court fee
C. Refund of Court fee where amount decreed is less than amount claimed
Answer & Explanation
Answer: Option C
Explanation:
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29. Every question relating to valuation of Court fee shall be determined by
A. The Court B. The parties
C. The Court officer
Answer & Explanation

32. Answer: Option A
Explanation:
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30. Refunding of Court fee paid on memorandum of appeal is dealt by
A. Section 12, of the Court Fees Act B. Section 13, of the Court Fees Act
C. Section 14, of the Court Fees Act
Answer & Explanation
Answer: Option B
31. The relevant provision of Court Fees Act, 1870 for refunding of fee on application for
review of judgment is
A. Section 13-A B. Section, 14
C. Section, 15
Answer & Explanation
Answer: Option B
Explanation:
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32. Where Court reverses or modifies its former decision on ground of mistake it shall
refund the fee as per
A. Section 14-A of the Court Fees Act, 1870 B. Section 15 of the Court Fees Act
C. None of above
Answer & Explanation
Answer: Option B
Explanation:
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33. Multifarious suits under section 17, of the Court Fees Act, of 1870 are concerned with
A. Two or more distinct subjects B. Three or more distinct subjects
C. None of the above
Answer & Explanation
Answer: Option A
Explanation:
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34. The documents specified under______ of the Court Fees Act, 1870 are exempted from
payment of Court fee
A. Section 18 B. Section 19
C. Section 19(A)
Answer & Explanation

33. Answer: Option B
Explanation:
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35. Which documents from the following are exempted from Court fee
A. Power of attorney B. Letters of administration
C. Both (a) and (b)
Answer & Explanation
Answer: Option C
Explanation:
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36. Section 20, of the Court Fees Act, 1870 empowers_____ to make rules as to cost of
processes
A. Privincial Government B. High Court
C. None of above
Answer & Explanation
Answer: Option B
Explanation:
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37. In criminal cases no fees shall be charged for serving and executing processes on behalf
of prosecution as provided in
A. Section 20 of the Court Fees Acts, 1870 B. Section 20A of the Court Fees Acts,
1870
C. Section 20B of the Court Fees Acts, 1870
Answer & Explanation
Answer: Option B
Explanation:
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38. The word "Vernacular language" used in section 21 of the Court Fees Act, means
A. Local language B. Roman language
C. English language
Answer & Explanation
Answer: Option A
Explanation:
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34. 39. Section 21, of the Court Fees Act, provide that a table of process fee shall be exposed to
view in conspicuous part of
A. Tax officer office B. Revenue Reocrd Room
C. Each Court
Answer & Explanation
Answer: Option C
Explanation:
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40. The section of the Court Fees Act, 1870 dealing with number of peons in District and
Subordinate Court is
A. Section 21-A B. Section 21-B
C. Section 22
Answer & Explanation
Answer: Option C
41. Section 23, of the Court Fees Act, deals with number of peons in
A. Courts B. Revenue Court
C. Criminal Courts
Answer & Explanation
Answer: Option B
Explanation:
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42. Mode of levying Court fees is provided in
A. Chapter IV of The Court Fees A B. Chapter V of The Court Fees Act
C. Chapter V(A) of The Court Fees Act
Answer & Explanation
Answer: Option B
Explanation:
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43. All fees referred to in section 3, or chargeable under the Court Fees Act, shall be
collected by stamps as provided in
A. Section 26 of the Court Fees Act, 1870 B. Section 26 of the Court Fees Act,
1870
C. Section 27 of the Court Fees Act, 1870
Answer & Explanation
Answer: Option A
Explanation:

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44. Section 26 of the Court Fees Act, 1870 provide that
A. The stamps to be impressed B. The stamps to be adhesive
C. Both (a) and (b)
Answer & Explanation
Answer: Option C
Explanation:
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45. Rules for supply, number, renewal and keeping accounts of stamps are provided in
A. Section 26, of the Court Fees Act, 1870 B. Section 27, of the Court Fees Act,
1870
C. Section 28, of the Court Fees Act, 1870
Answer & Explanation
Answer: Option B
Explanation:
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46. As per section 29, of the Court Fees Act, where any such document is amended in order
merely to correct a mistake and to make it conform to the original intention of the parties
A. It shall be necessary to impose a fresh stamp B. It shall not be necessary to
impose fresh stamp
C. Depends upon courts discretion
Answer & Explanation
Answer: Option B
Explanation:
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47. Section 30, of the Court Fees Act, deals with
A. Cancellation of stamp B. Renewal of stamp
C. None of above
Answer & Explanation
Answer: Option A
Explanation:
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48. Chapter VI, of the Court Fees Act, deals with
A. Court fees in Supreme Court B. Miscellaneous
C. None of the above
Answer & Explanation

36. Answer: Option B
Explanation:
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49. Section 33, of the Court Fees Act, deals with admission in_____ cases of documents for
which proper Court fee has not been paid
A. Civil Cases B. Criminal cases
C. Family cases
Answer & Explanation
Answer: Option B
Explanation:
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50. _______ Government makes rules for sale of stamps
A. Appropriate B. Federal
C. Provincial
Answer & Explanation
Answer: Option A
51. Section 35, of the Court Fees Act, deals with power of_____ with remitting fee.
A. High Court B. Supreme Court
C. Appropriate Government
Answer & Explanation
Answer: Option C
1) When did The Registration act 1908, come into force?
A) 01 April 1908
B) 01 January 1909
C) 01 May 1909
D) 23 April 1908
Answer –B) 01 January 1909
2) Which section of The Registration act 1908 deals with the Inspectors of Registration offices?
A. Section 12 of The Registration act 1908
B. Section 08 of The Registration act 1908
C. Section 14 of The Registration act 1908
D. Section 20 of The Registration act 1908
Answer B. Section 08 of The Registration act 1908
Which section of The Registration act 1908 deals with Register-books and fire-proof boxes ?

37. A. Section 16 of The Registration act 1908
B. Section 14 of The Registration act 1908
C. Section 13 of The Registration act 1908
D. Section 18 of The Registration act 1908
Answer – A. Section 16 of The Registration act 1908
Section 25 of The Registration act 1908 deals with_______?
A.Absence of Sub-Registrar or vacancy in his office
B. Provision where delay in presentation is unavoidable
C.Documents executed out of India
D. Place for registering other documents.
Ans- B. Provision where delay in presentation is unavoidable
5.Description of property and maps or plans, is provided in section____ of The Registration act
1908
A. Section 24 of The Registration act 1908
B. Section 22 of The Registration act 1908
C. Section 21 of The Registration act 1908
D. Section 23 of The Registration act 1908
Ans- C. Section 21 of The Registration act 1908
Section 16 of The Registration act 1908 provides _?
A.Register-books and fire-proof boxes
B.Time for presenting documents
C.Registration by Registrars in certain cases
D.Deposit of wills
Ans- A.Register-books and fire-proof boxes
MCQ on The Registration act 1908 with answers pdf
Which section of The Registration act 1908 deals with Districts and sub-districts ?
A. Section 7 of The Registration act 1908
B. Section 4 of The Registration act 1908
C. Section 5 of The Registration act 1908
D. Section 9 of The Registration act 1908
Answer – C. Section 5 of The Registration act 1908
Section 12 of The Registration act 1908 deals with_______?
A. Absence of Sub-Registrar or vacancy in his office
B. Wills may be presented or deposited at any time

38. C.Enquiry before registration by registering officer
D. Duties of registering officers when document presented
Ans- A. Absence of Sub-Registrar or vacancy in his office
9) Which section of The Registration act 1908 deals with the Offices of Registrar and Sub-
Registrar?
A. Section 7 of The Registration act 1908
B. Section 9 of The Registration act 1908
C. Section 4 of The Registration act 1908
D. Section 5 of The Registration act 1908
Answer – A. Section 7 of The Registration act 1908
10) Section 10 of The Registration act 1908 deals with_______?
A.. Documents executed out of India
B . Procedure where the appearance of executant or witness is desired.
C. Absence of Registrar or vacancy in his office
D. Fees payable on presentation
Answer- C. Absence of Registrar or vacancy in his office
1) When did the Negotiable Instruments Act come into force?
A) 1 April 1882
B) 1 March 1936
C) 01 May 1989
D) 01 March 1882
Answer –D) 01 March 1882
2) Which section of the Negotiable Instruments Act,1881 deals with Partial failure of
consideration not consisting of money?
A. Section 21 of the Negotiable Instruments Act,1881
B. Section 45 of the Negotiable Instruments Act,1881
C. Section 4 of the Negotiable Instruments Act,1881
D. Section 20 of the Negotiable Instruments Act,1881
Answer B. Section 45 of the Negotiable Instruments Act,1881
Which section of the Negotiable Instruments Act,1881 deals with Promissory note__ ?
A. Section 4 of the Negotiable Instruments Act,1881
B. Section 24 of the Negotiable Instruments Act,1881
C. Section 3 of the Negotiable Instruments Act,1881

39. D. Section 6 of the Negotiable Instruments Act,1881
Answer – A. Section 4 of the Negotiable Instruments Act,1881
Section 35 of the Negotiable Instruments Act,1881 deals with_______?
A. Liability of indorser
B. Suretyship
C.Liability of the maker of note and acceptor of a bill
D. Negotiation by delivery
Ans-A. Liability of indorser
. Liability of legal representative signing is provided in section____ of the Negotiable
Instruments Act,1881
A. Section 41 of the Negotiable Instruments Act,1881
B. Section 11 of the Negotiable Instruments Act,1881
C. Section 29 of the Negotiable Instruments Act,1881
D. Section 21 of the Negotiable Instruments Act,1881
Ans- C. Section 29 of the Negotiable Instruments Act,1881
Section 25 of the Negotiable Instruments Act,1881 provides _?
A. . When the day of maturity is a holiday
B. Liability of drawer
C. Agency
D. Liability of drawee of the cheque
Ans- A. . When the day of maturity is a holiday
MCQ on the Negotiable Instruments Act,1881 with answers pdf
Which section of the Negotiable Instruments Act,1881 deals with Rules as to compensation?
A. Section 21 of the Negotiable Instruments Act,1881
B. Section 31 of the Negotiable Instruments Act,1881
C. Section 117 of the Negotiable Instruments Act,1881
D. Section 29 of the Negotiable Instruments Act,1881
Answer – C. Section 117 of the Negotiable Instruments Act,1881
Section 18 of the Negotiable Instruments Act,1881 deals_______?
A. Where the amount is stated differently in figures and words
B. Presentment for acceptance.
C. Dishonour by non-acceptance
D. Payment for honour

40. Ans- A. Where the amount is stated differently in figures and words
9) Which section of the Negotiable Instruments Act,1881 deals with Presumption in favour of
holder. ?
A. Section 122 of the Negotiable Instruments Act,1881
B. Section 139 of the Negotiable Instruments Act,1881
C. Section 143 of the Negotiable Instruments Act,1881
D. Section 145 of the Negotiable Instruments Act,1881
Answer B. Section 139 of the Negotiable Instruments Act,1881
10) Section 123 of the Negotiable Instruments Act,1881 deals with_______?
A. Cheque crossed specially
B.. Set of bills.
C. Cheque crossed generally
D. Cognizance of offences
Answer- C. Cheque crossed generally
1. _______ means ‘something legally transferable from one person to another for a
consideration’.
a. Instrument b. Negotiable c. Negotiable Instruments d. all of the above
Ans. b
2. ______ means ‘ a written document by which some legal rights are created in favor of some
person’
a. Instrument b. Negotiable c. Negotiable Instruments d. all of the above
Ans. a
3. Negotiable instrument means a promissory note, bill of exchange or cheque, payable to
___________
a. Bearer b. order c. either to bearer or order d. neither bearer nor order
Ans. c
4. A negotiable instrument is freely transferable, by delivery if it is a/an ______________
instrument.
a. order b. bearer c. both a & B d. None of the above
Ans. b

41. 5. A negotiable instrument is freely transferable, by endorsement if it is a/an ____________
instrument.
a. order b. bearer c. both a & b d. None of the above
Ans. a
6. The transferee of a negotiable instrument is the one
a. who transfer the instrument b. on whose name it is transferred
c. who en chases it d. none of the above
Ans. b
7. The transferor of a negotiable instrument is the one
a. who transfer the instrument b. on whose name it is transferred
c. who en chases it d. none of the above
Ans. a
8. The instrument must be taken in good faith and with a
a. Interest b. consideration c. legal relation d. business
motive
Ans. b
9. when an instrument has been lost it is presumed that it was ____________
a. expired b. duly stamped c. stolen d. misplaced
Ans. b
10. which of the below given sentence is proper as to considered to be written in negotiable
instruments
a. I promise to pay B rs.500 b. Mr. B I.O (owe).U Rs.1000.
c. I am liable to pay you Rs.1000. d. none of the above.
Ans. d
11. _________ an instrument in writing containing an unconditional undertaking signed by the
maker to pay a certain sum of money only to, or to the order of, a certain person or to the
bearer of the instrument

42. You may also Like: MCQs on Business Law (Consumer Protection Act) with Answers
a. Promissory Note b. bill of exchange c. Cheque d.
none of the above
Ans. a
12. ______________ is an instrument in writing, containing an unconditional order, signed by
the maker, directing a certain person, to a pay a certain sum of money only to, or to the order
of a certain person or to the bearer of the instrument
a. Promissory Note b. bill of exchange c. Cheque d.
none of the above
Ans. b
13. The number of parties to a bill of exchange is _______
a. 2 b. 4 c. 6 d.
3
Ans. d
14. The number of parties to a Promissory Note is _______
a. 2 b. 4 c. 6 d. 3
Ans. a
15. Sec. 4 of negotiable instruments Act 1880 deals with
a. Promissory Note b. bill of exchange c. Cheque d.
none of the above
Ans. a
16. Sec. 5 of negotiable instruments Act 1880 deals with
a. Promissory Note b. bill of exchange c. Cheque d. none
of the above
Ans. b
17. Sec. 6 of negotiable instruments Act 1880 deals with
a. Promissory Note b. bill of exchange c. Cheque d. none
of the above
Ans. c

43. 18. The parties of a bill of exchange are
a. drawe acceptor and payee b. banker drawee and payee
c. banker acceptor and payee d. banker drawer and payee
Ans. a
19. __________________ cannot be a bearer instrument
a. Promissory Note b. bill of exchange c. Cheque d. none
of the above
Ans. a
20. Acceptance is _________________ in case of bill of exchange
a. compulsory b. optional c. not compulsory d. adequate
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Ans. a
21. Acceptance is _________________ in case of bill of exchange
a. compulsory b. optional c. not compulsory d. not
necessary
Ans. d
22. Drawer is both debtor to one and creditor to another in case of ________________
a. Promissory Note b. bill of exchange c. Cheque d. none
of the above
Ans. b
23. Liability of maker is __________ in case of bill of exchange
a. primary b. unlimited c. unconditional d. secondary
Ans. d
24. ___________ is an order to pay the third party
a. Promissory Note b. bill of exchange c. Cheque d. none
of the above
Ans. a

44. 25. A Promissory Note or Bill of Exchange can be made payable
a. On demand b. On a specific date
c. After a specified period – months or days. d. all of the above
Ans. d
26. To calculate the maturity date of a negotiable instrument the drawing date to be ___for
counting
a. included b. considered c. excluded d. non of the above
Ans. c
27. If the instrument is not ‘on demand’ ___________ days of grace is granted.
a. 7 b. 5 c. 3 d. 4
Ans. c
28. when the is crossed with Two parallel lines or with word ‘& Co.’ etc. this crossing is known
as
a. general crossing b. special crossing c. restrictive crossing d.
none of the above
Ans. a
29. when the is crossed with Two parallel lines or with ‘A/c payee only.’ etc. this crossing is
known as
a. general crossing b. special crossing c. restrictive crossing
d. none of the above
Ans. c
30. In the case of Bill of Exchange drawee is the ____________.
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a. maker b. acceptor c. payee d. none of the above
Ans. b
31. When the loss of cheque is intimated to the bank. It is advisable to get the cheque
a. dishonored b. cancelled c. stalled d. countermanded.

45. Ans. d
32. When bank has reason to believe that the title of the presenter is defective , then the
cheque will be
a. dishonored b. cancelled c. stalled d. countermanded.
Ans. a
33. A holder in due course will get protected from earlier defect of
a. no consideration b. conditional delivery c. unlawful means
d. all of the above
Ans. d
34. _____of an instrument means a person legally entitled to possess and receive in his own
name
a. owner b. maker c. holder d. receiver
Ans. c
35. Holder of an instrument is a person who holds the instrument
a. for a longer period b. before maturity c. after maturity d. on
behalf of the owner
Ans. b
36. Countermanding of a cheque is also known as
a. cancellation b. dishonor c. stop payment d. payment
through counter
Ans. c
37. ‘Something legally transferable from one person to another for a consideration’ is known as
a. Endorsement b. bill of exchange c. promissory note d.
negotiation
Ans. d
38. ‘ A written document by which some legal rights are created in favour of some person’
a. Endorsement b. Instrument c. promissory note d.
negotiation

46. Ans. b
39. Incase of dishonor of a bill of exchange _______________________ is compulsory
a. noting b. protesting c. both noting & protesting d. neither
noting nor protesting
Ans. d
40. A cheque will become a stalled cheque after _________ months of its date
a. 6 b. 5 c.4 d. 3
Ans. D
1. Person named in the instrument to whom money is directed to be paid is known as
_______________.
a) Drawer
b) Acceptor
c) Maker
d) Payee
Ans D
2. Maker of a bill of exchange is called as ____________
a) Drawer
b) Drawee
c) Acceptor
d) Payee
Ans A
3. Days of grace provided to the Instruments at maturity is _______________
a) 1 day
b) 2 days
c) 3 days

47. d) 5 days
Ans C
4. Parties to a negotiable instrument can be discharged from liability by ______________
a) Cancellation
b) Payment
c) Release
d) All of the above
Ans D
5. Validity period for the presentment of cheque in bank is _______________
a) 3 months
b) 6 months
c) 1 year
d) 2 years
Ans A
6. Offences committed under the Negotiable Instruments Act can be _______________
a) Compoundable
b) Non-compoundable
c) Non-compoundable and non-bailable
d) Bailable
Ans A
7. A negotiable instrument that is payable to order can be transferred by:
a) Simple delivery
b) endorsement and delivery
c) endorsement
d) registered post

48. Ans B
8. A negotiable instrument drawn in favour of minor is
a) Void
b) Void but enforceable
c) Valid
d) None of these
Ans C
9. Which of the following is not applicable to negotiable instruments?
a) It must be in writing
b) It must be transferable
c) It must be registered
d) It must be signed
Ans C
10. ‘A’ signs the instrument in the following manner. State the instrument which cannot be
considered as promissory note.
a) I promise to pay B or order INR 500.
b) I acknowledge myself to be indebted to B for INR 1,000 to be paid on demand for value
received.
c) I promise to pay B INR 10,000 after three months.
d) I promise to pay B INR 500 seven days after my marriage with C.
Ans D
11. A promissory note drawn jointly by X, a minor and Y, a major is:
a) Void
b) Valid but not negotiable
c) Valid but can be enforced only against Y

49. d) None of the above
Ans C
12. In legal terms, person who takes the instruments bonafide for value before it is overdue, in
good faith, is known
as:
a) Holder in due course
b) Holder
c) Holder for value
d) None of the above
Ans A
13. P obtains a cheque drawn by M by way of gift. Here P is a:
a) Holder in due course
b) Holder for value
c) Holder
d) None of the above
Ans C
14. As per the Negotiable Instruments Act, 1881, when the day on which a promissory note or
bill of exchange is at maturity is a public holiday, the instrument shall be deemed to be due on
the …….……..
a) said public holiday
b) 5 days succeeding public holiday
c) next succeeding business day
d) next preceding business day
Ans D
15. Person named in the instrument to whom money is directed to be paid:
a) Drawer

50. b) Acceptor
c) Maker
d) Payee
Ans D
16. A draws a cheque in favour of M, a minor. M endorses the same in favour of X. The cheque
is dishonoured by the bank on grounds of inadequate funds. As per the provisions of Negotiable
Instruments Act, 1881:
a) M is liable to X
b) X can proceed against A
c) No one is liable in this case
d) M can proceed against A
Ans B
17. While drawing a bill of exchange, a person whose name is given in addition to the drawee
who can be resorted in case of need, is called _____________________.
a. Acceptor
b. Acceptor for honour
c. Drawee in case of need
d. Drawer
Ans C
18. A draws a bill on B. B accepts the bill without any consideration. The bill is transferred to C
without consideration. C transferred it to D for value. Decide as per provisions of Negotiable
Instruments Act, 1881-
a. D can sue only A
b. D can sue A or B only
c. D can sue any of the parties A, B or C
d. D cannot sue any of the parties A, B or C
Ans C

51. 19. The date of maturity of a bill payable hundred days after sight and which is presented for
sight on 4th May, 2017, is (as per the provisions of the Negotiable Instruments Act, 1881):
a. 13 August, 2017
b. 14 August, 2017
c. 15 August, 2017
d. 16 August, 2017
Ans B
20. A draws a bill on B for INR 500 payable to the order of A. B accepts the bill, but
subsequently dishonour it by non – payment. A sues B on the bill but B proves that it was
accepted for value as to INR 400, and as an accommodation to the plaintiff as to the residue.
Thus, as per the provisions of the Negotiable Instruments Act, 1881, A can only recover the
following amount:
a. 900
b. 500
c. 400
d. 100
Ans C
21. An instrument containing a promise to __________ is valid promissory note.
a. Pay Rs. 10 lakhs
b. Deliver certain goods
c. Pay Rs. 10 lakh and deliver certain goods
d. Both (a) and (c)
Ans A
22. In case on an accepted bill, the liability of drawer is __________
a. Primary and unconditional
b. Primary and conditional
c. Secondary and conditional

52. d. Secondary and unconditional
Ans C
23. Until the bill is accepted, the liability of drawer is __________.
a. Primary and unconditional
b. Primary and conditional
c. Secondary and conditional
d. Secondary and unconditional
Ans B
24. Until the bill is accepted, the liability of drawee is __________.
a. Primary and unconditional
b. Primary and conditional
c. Secondary and conditional
d. None of these
Ans D
25. In case of an accepted bill, the liability of drawee is __________
a. Primary and unconditional
b. Primary and conditional
c. Secondary and conditional
d. None of these
Ans A