Concepts Related to Negotiable Instruments

16. Which of the following is not a party to a promissory note?

a) Drawer

b) Payee

c) Maker

d) Endorser

17. Which of the following is not a characteristic of negotiable instruments?

a) Transferability

b) Certainty of amount

c) Legality of purpose

d) Conditional payment

18. Which party is primarily liable to pay in a negotiable instrument?

a) Payee

b) Drawer

c) Endorser

d) Maker

19. What is the purpose of crossing a cheque?

a) To make payment through a bank only

b) To restrict negotiation of the cheque

c) To increase the security of the cheque

d) All of the above

20. In a cheque, the payee is:

a) The person who signs the cheque

b) The person who receives the payment

c) The bank where the cheque is drawn

d) The person who writes the cheque