Various Negotiable Instruments

16. A bill of exchange is drawn by the:

a) Holder of the instrument

b) Payee of the instrument

c) Drawer of the instrument

d) Drawee of the instrument

17. When a cheque is crossed, it cannot be:

a) Deposited in a bank account

b) Cashed at the bank counter

c) Transferred to another person

d) Used for online payments

18. The payee of a cheque is the:

a) Person who receives the payment

b) Bank where the cheque is presented

c) Person who issues the cheque

d) Person in whose favor the cheque is drawn

19. A promissory note is a negotiable instrument in which the maker promises to:

a) Pay a sum of money to the payee

b) Transfer funds electronically

c) Issue a cheque to the payee

d) Lend money to the payee

20. An undated cheque is:

a) Not a valid negotiable instrument

b) Valid for one year from the date of issue

c) Valid until the drawer cancels it

d) Valid until the date specified by the drawer or within six months