Various Negotiable Instruments

41. A banker’s cheque is drawn by:

a) A bank on its own funds

b) An individual on a bank

c) A bank on behalf of a customer

d) A bank on behalf of another bank

42. A promissory note can be payable to:

a) Bearer

b) Order

c) Self

d) All of the above

43. Which of the following is not a type of negotiation of an instrument?

a) Transfer by delivery

b) Transfer by endorsement

c) Transfer by acceptance

d) Transfer by assignment

44. A post-dated cheque is not valid until the:

a) Date written on it

b) Date of issue

c) Date of acceptance

d) Date of payment

45. When a cheque is dishonored, the drawer’s bank deducts charges known as:

a) Dishonor charges

b) Rejection fees

c) Non-payment fees

d) Cheque bounce charges