Various Negotiable Instruments

46. The liability of an endorser on a negotiable instrument is:

a) Primary liability

b) Secondary liability

c) Full liability

d) No liability

47. A drawer can cancel a cheque by:

a) Issuing a new cheque

b) Endorsing the cheque

c) Contacting the bank

d) Tearing the cheque

48. Which of the following is a finance bill?

a) Draft payable after sight

b) Draft payable on demand

c) Draft payable on a fixed date

d) Draft payable on a future date

49. A bank draft is also known as a:

a) Demand draft

b) Sight draft

c) Usance draft

d) Promissory draft

50. The payment on a negotiable instrument can be made in:

a) Cash only

b) Cheque only

c) Cash or cheque

d) Online transfer only