46. What is the purpose of a bank guarantee?
a) To ensure the payment of a debt
b) To provide collateral for a loan
c) To facilitate international trade
d) To authorize a bank to make payments on behalf of a customer
47. Which of the following statements is true about a promissory note?
a) It is a promise to pay made by the drawee
b) It is a written order to pay made by the payee
c) It is a promise to pay made by the maker
d) It is a written order to pay made by the drawer
48. What is the liability of the endorser in a negotiable instrument?
a) Primary liability
b) Secondary liability
c) Conditional liability
d) No liability
49. Which of the following is not a type of crossing of a cheque?
a) General crossing
b) Special crossing
c) Local crossing
d) Open cheque
50. What is the maximum maturity period of a bank draft?
a) 3 months
b) 6 months
c) 9 months
d) No limit
