Payment and Collection of Cheques and Other Negotiable Instruments MCQ Quiz in मल्याळम - Objective Question with Answer for Payment and Collection of Cheques and Other Negotiable Instruments - സൗജന്യ PDF ഡൗൺലോഡ് ചെയ്യുക

The correct answer is option 1, i.e. Drawer.

• Section 5 of the Negotiable Instruments Act, 1881 defines a bill of exchange.
• Let us understand this by example, Suppose You have given a loan of Rs 5000 to Randhir, which Randhir has to return.
• Now, You also have to give some money to Monika.
• In this case, You can make a document directing Randhir to make payment up to Rs 5000 to Monika on demand or after expiry of a specified period.
• This document is called a Bill of Exchange, which can be transferred to some other person’s name by you.

Parties to a Bill of Exchange

• There are three parties involved in a bill of exchange. They are:
  • The Drawer – The person who makes the order for making payment. In the above specimen,You is the drawer.
  • The Drawee – The person to whom the order to pay is made.He is generally a debtor of the drawer. It is Randhir in this case.
  • The Payee – The person to whom the payment is to be made. In this case it is Monika.
• The drawer can also draw a bill in his own name thereby he himself becomes the payee. Here the words in the bill would be Pay to us or order.
• In a bill where a time period is mentioned, just like the above specimen, is called a Time Bill. But a bill may be made payable on demand also. This
  is called a Demand Bill.

The correct answer is option 2, i.e. Payee.

• Section 4 of the Negotiable Instruments Act, 1881 defines a promissory note 
• Lets understand this by simple example, Suppose you take a loan of  Rs 10,000 from your friend Soumya.
• You can make a document stating that you will pay the money to Soumya or the bearer on demand.
• Or you can mention in the document that you would like to pay the amount after three months.
• This document, once signed by you, duly stamped and handed over to Soumya becomes a negotiable instrument.
• Now Soumya can personally present it before you for payment or give this document to some other person to collect money on his behalf.
• He can endorse it in somebody else’s name who in turn can endorse it further till the final payment is made by you to whosoever presents it before you. This type of a document is called a Promissory Note.

Parties to a Promissory Note

• There are primarily two parties involved in a promissory note. They are:
  • The Maker or Drawer – the person who makes the note and promises to pay the amount stated therein. In the above specimen, you are the maker or drawer.
  • The Payee – the person to whom the amount is payable. In the above specimen it is Soumya.

The correct answer is option 5, i.e. Both 2 and 3.

• Section 4 of the Negotiable Instruments Act, 1881 defines a promissory note 
• Lets understand this by simple example, Suppose you take a loan of  Rs 10,000 from your friend Randhir.
• You can make a document stating that you will pay the money to Randhir or the bearer on demand.
• Or you can mention in the document that you would like to pay the amount after three months.
• This document, once signed by you, duly stamped and handed over to Randhir, becomes a negotiable instrument.
• Now Randhir can personally present it before you for payment or give this document to some other person to collect money on his behalf.
• He can endorse it in somebody else’s name who in turn can endorse it further till the final payment is made by you to whosoever presents it before you. This type of a document is called a Promissory Note.

Parties to a Promissory Note

• There are primarily two parties involved in a promissory note. They are:
  • The Maker or Drawer – the person who makes the note and promises to pay the amount stated therein. In the above specimen, you are the maker or drawer.
  • The Payee – the person to whom the amount is payable. In the above specimen it is Randhir.

 

The correct answer is option 3, i.e. 147.

• ​Negotiability means the transfer of an instrument from a person/entity to another person/entity.
• Negotiable instruments are documents meant for making payments, the ownership of which can be transferred from one person to another many time before the final payment is made.
• According to section 13 of the Negotiable Instruments Act, 1881, a negotiable instrument means “promissory note, bill of exchange or cheque, payable either to order or to bearer”
• According to the Negotiable Instruments Act, 1881 there are just three types of negotiable instruments i.e., promissory note, bill of exchange and cheque.
•  However many other documents are also recognized as negotiable instruments on the basis of custom and usage, like hundis, treasury bills, share warrants, etc., provided they possess the features of negotiability.
• There are 147 different sections in this act.  
• Key sections of this act are as follows:
• Section 4 deals with promissory notes
• Section 5 deals with Bill of Exchange
• Section 6 deals with Cheque
• Section 15 deals with Endorsements

The correct answer is option 2, i.e. Section 5.

• Negotiability means transfer of an instrument from a person / entity to another person / entity.
• Negotiable instruments are documents meant for making payments, the ownership of which can be transferred from one person to another many times before the final payment is made.
• According to section 13 of the Negotiable Instruments Act, 1881, a negotiable instrument means “promissory note, bill of exchange, or cheque, payable either to order or to bearer”
• According to the Negotiable Instruments Act, 1881 there are just three types of negotiable instruments i.e., promissory note, bill of exchange and cheque.
• However many other documents are also recognized as negotiable instruments on the basis of custom and usage, like hundis, treasury bills, share warrants, etc., provided they possess the features of negotiability.
• There are 147 different sections in this act.  
• Key sections of this act are as follows:
  • Section 4 deals with Promissory notes
  • Section 5 deals with Bill of Exchange
  • Section 6 deals with Cheque
  • Section 15 deals with Endorsements
• As per Section 5 of the Negotiable Instruments Act, 1881 defines a bill of exchange as ‘an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to or to the order of a certain person, or to the bearer of the instrument’.

The correct answer is option 1, i.e. Section 4.

• Negotiability means transfer of an instrument from a person / entity to another person / entity.
• Negotiable instruments are documents meant for making payments, the ownership of which can be transferred from one person to another many times before the final payment is made.
• According to section 13 of the Negotiable Instruments Act, 1881, a negotiable instrument means “promissory note, bill of exchange, or cheque, payable either to order or to bearer”
• According to the Negotiable Instruments Act, 1881 there are just three types of negotiable instruments i.e., promissory note, bill of exchange and cheque.
• However many other documents are also recognized as negotiable instruments on the basis of custom and usage, like hundis, treasury bills, share warrants, etc., provided they possess the features of negotiability.
• There are 147 different sections in this act.  
• Key sections of this act are as follows:
  • Section 4 deals with promissory notes
  • Section 5 deals with Bill of Exchange
  • Section 6 deals with Cheque
  • Section 15 deals with Endorsements
• Section 4 of the Negotiable Instruments Act, 1881 defines a promissory note as ‘an instrument in writing (not being a bank note or a currency note) containing an unconditional undertaking, signed by the maker, to pay a certain sum of money only to or to the order of a certain person or to the bearer of the instrument’

 

As per RBI guidelines, with effect from April 1, 2012, the validity period or Cheques. Demand Drafts, Pay Orders and Banker’s cheques have been reduced from 6 months to 3 months, from the date of issue of the instrument.

To check the cheque related Frauds, the examination under ultra-violet (UV) lamp for all cheques beyond a threshold of Rs. 2 lakhs is mandatory.

Money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. The common money market instruments are: Certificate of Deposit, Repurchase Agreements, Commercial Paper, Treasury Bills, Money Funds, Foreign Exchange Swaps, as-set-backed securities, etc.

Where a promissory note, bill of exchange or cheque has been materially altered but does not appear to have been so altered, or where a cheque is presented for payment which does not at the time of presentation appear to be crossed or to have had a crossing which has been obliterated, payment thereof by a tenor thereof at the time of payment and otherwise in due course, shall discharge such person or banker discharge such person or banker from all liability thereon; and such payment shall not be questioned by reasons of the instrument having been altered, or the cheque crossed.