Concepts Related to Negotiable Instruments

Here are some MCQs on Concepts Related to Negotiable Instruments

1. Which of the following is not a negotiable instrument?

a) Cheque

b) Promissory Note

c) Bill of Exchange

d) Demand Draft

2. Which parties are involved in a negotiable instrument?

a) Payee and drawer

b) Payee and drawee

c) Drawer and drawee

d) Payee and endorser

3. A cheque is valid for how many months from the date of issue?

a) 3 months

b) 6 months

c) 9 months

d) 12 months

4. What is the maximum amount of money a cheque can be written for?

a) No limit

b) Rs. 1 lakh

c) Rs. 2 lakhs

d) Rs. 5 lakhs

5. Which type of endorsement transfers the rights of a negotiable instrument to a specific person?

a) Blank endorsement

b) Restrictive endorsement

c) Special endorsement

d) Qualified endorsement