1. A negotiable instrument is an instrument which is freely transferable from one person to another by:
A) Simple delivery
B) Indorsement and delivery ✓
C) Indorsement
D) Registered post
CA Foundation Paper 2
The Negotiable Instruments Act, 1881 MCQ
Chapter 7 • 10 Questions from ICAI Study Material
Questions
10
Est. Time
8 min
Source
ICAI Book
Question 1 of 10 0 correct | 0 wrong
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Sample Questions: The Negotiable Instruments Act, 1881
Preview 8 of 10 MCQs from Chapter 7
2. An instrument which is vague and cannot be clearly identified either as a bill of exchange, or as a promissory note, is called as:
A) bearer instrument
B) Ambiguous instrument ✓
C) Order instrument
D) Inland instrument
3. As per Negotiable Instruments Act, 1881, Negotiable Instruments means:
A) Promissory Note
B) Bills of Exchange
C) Cheque
D) All the above ✓
4. How many parties in Bills of exchange:
A) 2
B) 3 ✓
C) 4
D) 5
5. On which of the followings, even not defined in Negotiable Instruments Act 1881, provisions of Act are applicable:
A) Hundies
B) Treasury Bills
C) Bearer Debentures
D) All of the above ✓
6. Which is not the essential characteristic of Bill of exchange:
A) Must be in writing
B) Must contain an express promise to pay ✓
C) Instrument must be signed
D) Must be stamped
7. Which is not an Inland Instrument:
A) P/N made in India + payable in India + drawn upon person resident in India
B) P/N made in India + payable in India + drawn upon person resident outside India
C) P/N made in India + payable outside India + drawn upon person resident in India
D) P/N made in India + payable outside India + drawn upon person resident outside India ✓
8. Negotiable Instrument which can be treated either P/N or BOE, is known as:
A) Inland Instrument
B) Inchoate Instrument
C) Ambiguous Instrument ✓
D) Foreign Instrument