Banking Quiz – 72

1. On a cheque issued by a customer, the words bearer or order are written. This cheque will be treated as:
a) A bearer cheque
b) An order cheque
c) This is not a valid cheque
d) This is not a negotiable instrument now

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Answer a) A bearer cheque

2. Courtesy amount in a cheque stands for
a) amount in words
b) amount in figures
c) amount written as not over
d) amount in words in figures, whichever is higher

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Answer b) amount in figures

3. On which of the following types of cheques alterations are not allowed by RBI
a) paper cheque
b) CTS cheque
c) Electronic cheque
d) Cheque with account payee crossing

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Answer b) CTS cheque

4. Which of the following cannot be endorsed?
a) A fixed deposit
b) A bank draft
c) A promissory note
d) A usance bill of exchange
e) A cheque

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Answer a) A fixed deposit

5. Account payee crossing is an direction of the drawer to
a) To collecting banker
b) To drawee banker
c) To payee
d) to all endorsees
e) None of these

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Answer a) To collecting banker

6. Which among the following group of instruments can be crossed by the drawer of holders?
a) a bill of exchange and delivery order
b) a delivery order and cheque
c) a promissory note and demand draft
d) bank draft or cheque

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Answer d) bank draft or cheque

7. Crossing is a direction
a) of drawer to the payee
b) of endorser to endorsee
c) of drawer to drawee bank
d) None of the above

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Answer c) of drawer to drawee bank

8. In case of collection of cheques and bills, the relationship of the banker with the customer is that of
a) Bank as agent and customer trustee
b) Bank as trustee and customer debtor
c) Banker as debtor and customer bailee
d) Banker as bailor and customer bailee
e) bank as agent and customer principal

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Answer a) Bank as agent and customer trustee

9. In case collection of a bank draft the collecting banker is protected against conversion under _____ section of Negotiable Instruments Act 1881
a) 131
b) 131 A
c) 85
d) 128
e) 89

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Answer b) 131 A

10. A cheque has been deposited by a customer with his bank for collection. The bank allows overdraft against the security thereof. The bank becomes
a) Holder of the cheque
b) Holder in due course
c) Holder for value
d) Drawer of the cheque
e) None of the above

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Answer c) Holder for value

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