MCQs Banking in English, Bill of Exchange

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Banking & Finance

Credit Instruments

1.   Bill of Exchange

 Bill of exchange may be classified as:

Bill by time	Bill by place
Bill by payment	All

Bill of Exchange is a/ an

Request	Order
Promise	All

 Bill of exchange is    

A conditional order	An unconditional order
Both	none

Like a cheque, a bill may be

Dishonour	Pre dated
Post dated	all

A bill must be

In order form	In writing form
Accepted	all

 Bill of exchange may be

Bearer	Crossed
both	none

 Holder of the bill may be

Drawer	Creditor
payee	all

 One who rightfully possess the bill, is known as

Holder of due course	Holder
Endorser	Endorsee

 Accommodation bill is drawn to:

Borrow	Lend
Trade	Business

 A sight bill is payable

At due date	After due date
On demand	Before due date

 A bill for a definite period is known as

Demand bill	Time bill
Order bill	Trade bill

 These are the parties to a bill

Maker	Accepter
Drawee	all

 The endorser of the bill is

Accepter	Drawee
Creditor	all

 The bill of exchange is accepted by

Seller	Buyer
Creditor	Debtor

Those who receive the money against the bill are

Payee & endorsee	Payer & acceptor
Drawer & maker	Endorser & accepter

A bill may be dishonoured on the ground of

No acceptance	No payment
None	Both

 Noting of the bill is done by

Notary Public	Aggrieved party
Bank	drawee

 When bill is paid before time, the compensated amount is known as:

Rebate	Discount
Rediscount	profit

The action of payment of bill before maturity is known as:

Retirement of bill	Discounting of bill
Rediscounting of bill	Maturity of bill

 

This is the function of commercial banks

Retirement of bill	Discounting of bill
Rediscounting of bill	Maturity of bill

 This is the function of central bank.

Retirement of bill	Discounting of bill
Rediscounting of bill	Rebate of bill

The time to be availed after due date, is known as

Grace days	Maturity days
Retirement days	Rebate

 A bill of exchange may be as

Foreign bill	Documentary bill
Demand bill	All

Another name of sight bill is:

Foreign bill	Documentary bill
Demand bill	Time bill

Bank discounts the bill of 

Rich A/C Holder	Credible A/C Holder
An Exporter	An Importer