MCQ for CA Intermediate LAW - PART 2 - OTHER LAWS - Chapter 2 - THE NEGOTIABLE INSTRUMENTS ACT, 1881

Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 2 - Corporate and Other Laws - PART 2 - OTHER LAWS - Chapter 2: THE NEGOTIABLE INSTRUMENTS ACT, 1881 - For Practice relevant for May/November 23 Examinations


Q:1 The Negotiable Instruments Act, 1881 applies to whole of India but excludes…

  1. Any State Government Transaction
  2. Any local authority Transaction
  3. Any Central Govt.Transactions
  4. Transaction as per Reserve Bank of India Act, 1934, section 21 which provides the Bank tohave the right to transact Government business In India

Answer: 4

Q:2 The property in a Negotiable Instrument Passes to a…………transferee for value.

  1. Mala fide
  2. Bona fide
  3. Both a and b
  4. Can be Mala fide as well as bona fide

Answer: 2

Q:3 A promissory note must contain…….

  1. Undertaking
  2. Conditional undertaking
  3. Unconditional undertaking
  4. can be Conditional undertaking or Unconditional undertaking

Answer: 3 

Q:4 Where no rate of interest is specified in the bills of exchange or promissory notes then what is the interest rate used for calculating the interest amount?

  1. 15% P.A.
  2. 18% P.A.
  3. 12% P.A.
  4. 16% P.A.

Answer: 2

Q:5 Who is the person so entitled at the time of such loss or destruction to receive or recover the amount due thereon from the parties where the note, bill or cheque is lost or destroyed?

  1. acceptor
  2. Drawer
  3. Payer
  4. Holder

Answer: 4

Q:6 If the holder of a bill of exchange allows the drawer more than…………………..hours, exclusive of public holidays to consider whether he will accept the same, all previous parties not consenting to such allowance are thereby discharged from liability to such holder

  1. 36
  2. 24
  3. 72
  4. 48

Answer: 4

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