1. The Negotiable Act, 1881 applies to
a) the whole of India
b) the whole of India except the State of Jammu and Kashmir
c) those states as notified by the union Government From time to time in the Official Gazette
d) the whole of India except the State of Jammu and Kashmir and the North – Eastern States.
e) None of the above
2. The Negotiable Instruments Act, 1881 came into force on
a) 9th December, 1881
b) 19th December, 1881
c) 1st March, 1882
d) 1st March, 1883
e) None of the above
3. The undertaking contained in a promissory note, to pay a certain sum of money is
a) conditional
b) unconditional
c) may be conditional or unconditional depending upon the circumstances
d) None of the above
e) Cannot be said
4. A bill of exchange contains a/an
a) unconditional undertaking
b) unconditional order
c) conditional undertaking
d) conditional order
e) None of the above
5. Cheque is a
a) Promissory note
b) Bill of exchange
c) Convenient and safe mode of payment
d) All the above
e) None of these
6. The term ‘ a cheque in the electronic form’ is defined in the Negotiable Instruments Act, 1881 under
a) Section 6(c)
b) Section S(I) (a)
c) Section 6 (a)
d) Section 6(1)(a)
e) Section 134 (a)
7. The term “ a truncated cheque” is defined in the Negotiable Instruments Act, 1881 – Under
a) Section 6(c)
b) Section 6 (a)
c) Section 6 (b)
d) Section 134 (a)
e) Section 8 (b)
8. The term ‘ Negotiable instrument’ is defined in the Negotiable Instruments Act, 1881, under, section
a) 12
b) 12 (c)
c) 13
d) 13 (A)
e) 2 (d)
9. The term ‘negotiation’ in section 14 of the Negotiable Instruments Act, 1881 refers to
a) The transfer of a bill of exchange, promissory note or cheque to any person, so as to constitute the person the holder there of
b) The payment by a bank on a negotiable instrument after due verification of the instrument
c) The bargaining between the parties to a negotiable instrument
d) An instrument that may be construed either as a promissory note or bill of exchange, the holder may at his election treat it as either.
e) All the above
10. The maturity of a promissory note of bill of exchange is the date at which it falls due. The term ‘ maturity’ is defined in which of the following sections of the negotiable Instrument Act, 1881
a) Section 18
b) Section 21
c) Section 21 (a)
d) Section 22
e) Section 27
11. If an instrument may be construed either as a promissory note or bill of exchange, it is
a) A valid instrument
b) An ambiguous instrument
c) A returnable instrument
d) Dual instrument
e) None of the above
12. If in an instrument the amount undertaken or ordered to be paid is stated differently in figures and in words
a) The instrument is void due to uncertainty
b) The amount stated in figure shall be the amount undertaken or ordered to be paid
c) The amount stated in words shall be the amount undertaken or ordered to be paid
d) The amount paid thereof is reduced by certain percentage.
e) None of the above
13. Under section 16 of the Negotiable Instrument Act, ‘indorsement in blank’ of an instrument means
a) Where the indorser does not write anything on the instrument
b) Where the indorser writes signs his name only on the instrument
c) Where the indorser writes the name of the person who is directed to pay
d) Where the indorser adds direction to pay the amount mentioned in the instrument
e) None of the above
14. ‘At sight’ under section 21 of the Negotiable Instrument Act, 1881, means
a) On presentation
b) On demand
c) On coming into vision
d) Physical presence
e) None of the above
15. In the Negotiable Instrument Act of 1881, the expression” public holiday” includes
a) All Sundays in a year
b) National Holidays
c) Any other days as notified in the official gazette of the central government
d) All of the above
e) None of the above
16. If a minor draws, indorses, deliver or negotiates an instrument, such instrument binds
a) All parties to the instrument including the minor
b) Only the minor and no other parties to the instrument
c) All parties to the instrument except the minor
d) All of the above
e) None of the above
17. “When the maker or holder of a negotiable instrument signs the same, otherwise than as such maker, for the purpose of negotiation, on the back or face thereof or on a slip of paper annexed thereto, or so signs for the same purpose a stamped paper intended to be completed as a negotiable instrument, he is said to indorse the same, – and is called the:”
a) Legal Holder
b) Negotiator
c) Legal Maker
d) Indorser
e) None of the above
18. In a promissory note, the amount of money payable
a) Must be certain
b) May be certain or uncertain
c) Is usually uncertain
d) Is reduced at the time of payment
e) None of the above
19. The provision relating to dishonor of cheque for insufficiency of funds in the account is inscribed in which of the following sections of the Negotiable Act of 1881:
a) Section 28
b) Section 128
c) Section 138
d) Section 142
e) Section28(a)
20. Can a drawer escape from his liability?
a) No, a drawer can never escape from his liability
b) Yes, a drawer can limit or exclude his liability by inserting in the bill an express stipulation to that effect
c) In certain cases although he can escape from his liability but always he cannot so escape
d) All of the above
e) None of the above
21. Can the holder of a negotiable instrument indorsed in blank covert the indorsement into an indorsement in full?
a) No, such a conversion is not possible under the Negotiable instruments Act, 1881 (Section 49)
b) Yes, the holder can, without signing his own name, and by writing above the indorser’s signature a direction to pay to any other person as indorsee, convert the indorsement in blank into an indorsement in full (Section 49)
c) Yes, the holder can by signing his own, name and by writing above the indorser’s signature a direction to pay to any other person as indorsee, covert the indorsement in blank to an indorsement in full (Section 49)
d) No, it is not required
e) None of the above
22. Which of the following is not a justified ground of dishonouring of cheque by banker?
a) The cheque is post-dated and presented before the ostensible date.
b) The banker had sufficient funds, but the funds are not properly applicable towards the payment of the cheque
c) If the cheque is altered in parts
d) If the cheque is duly presented
e) None of the above
23. If the words “not negotiable” are used with special crossing in a cheque, the cheque is
a) Not transferable
b) Transferable
c) Negotiable under certain circumstances
d) All of the above
e) None of the above
24. If in a negotiable instrument the amount undertaken or ordered to be paid is stated differently in figures and in words :
a) The amount stated in words shall be the amount undertaken or ordered to be paid
b) The amount stated in figures shall be the amount undertaken or ordered to be paid
c) No amount shall be undertaken or ordered to be paid
d) It shall be decided by Banking Ombudsman
e) None of the above
25. What is the presumption under section 137 of the Negotiable Instruments Act, 1881?
a) A negotiable instrument drawn in a foreign country is genuine
b) The law of any foreign country regarding promissory notes, bills of exchange and cheques is same as that of India
c) Both (a) and (b)
d) Only (b)
e) None of the above
26. Who among the following cannot cross a cheque?
a) Drawer
b) Holder
c) Banker
d) Foreigner
e) None of the above
27. In case of bouncing of cheque, what is the maximum period of imprisonment?
a) 1 year
b) 2 years
c) 3 years
d) 6 months
e) 90 days
28. Which of the following is / are essential feature(s) of the Negotiable Instrument Act of 1881?
a) Easily transferrable from one person to person
b) Negotiability confers absolute and good title on the transferee
c) Holder in due course possesses the right to sue upon the instrument in his own name
d) All of them
e) None of them
29. A promissory note, bill of exchange or cheque drawn or made in India, and made payable in or drawn upon any person resident in India shall be deemed to be an inland instrument. Inland mentioned is elaborated in which of the following sections of the Negotiable Act of 1881?
a) Section 10
b) Section 11
c) Section 22
d) Section 34
e) None of the above
30. Which of the following is a negotiable instrument in India as per the Negotiable Instrument Act of 1881?
a) Promissory note
b) Bills of exchange
c) Cheque
d) Dividend warrants
e) Money orders
31. E-banking refers to:
a) Effective banking
b) Electrical banking
c) Electronic banking
d) Essential banking
e) Easy banking
32. E-banking is also called as
a) Virtual banking
b) Online banking
c) Easy banking
d) Both a & b
e) None of the above
33. The term e-commerce includes:
a) Electronic trading of physical goods and intangibles such as information
b) The electronic provision of services such as after sales support or online legal advice
c) All the steps involved in trade, such as on-line marketing ordering payment and support for delivery
d) All of the above
e) None of the above
34. Which of the following is / are the major advantages of E-banking?
a) The operating cost per unit services is lower for the banks
b) It offers convenience to customers as they are not required to go the bank’s premises
c) There is very low incidence of errors
d) The customer can obtain funds at any time from ATM machines
e) All of the above
35. Which of the following is the largest community in classification of e-commerce?
a) Business to business (B to B)
b) Business to Consumer (B to C)
c) Business to Government (B to G)
d) Government to Government (G to G)
e) None of the above
36. Which of the following is not the example of business to consumer (B to C) e-commerce?
a) e-bay.com
b) amazon.com
c) dell.com
d) lastminute.com
e) none of the above
37. The types of Business to Business e-commerce are _____.
a) Direct selling and support to Business
b) Industry portals
c) Information sites about an industry
d) All of the above
e) None of the above
38. Which of the following are the benefits of E-marketing?
i. Speed
ii. Reach and penetration
iii. Ease and Efficiency
iv. Low Cost
v. Targeted audience
a) i, ii, iii and iv only b) ii, iii, iv and v only c) i, iii, iv and v only
d) All i, ii, iii, iv and v e) None of the above
39. ______ is the process of recreating a design by analyzing a final product.
a) Forward engineering
b) Reverse engineering
c) Backward engineering
d) Positive engineering
e) None of the above
40. ______ is simply the use of electronic means to transfer funds directly from one account to another, rather than by cheque or cash.
a) Mu-Banking b) T-Banking c) E-Banking d) D-Banking e)S-Banking
41. The telephone banking service includes _______.
i. Automatic balance voice out
ii. Inquiry all term deposit account
iii. Direct cash withdraw
iv. Utility bill payments
v. Voice out last five transactions
a) i, ii, iii and v only b) i, ii, iv and v only c) ii, iii, iv and v only
d) All i, ii, iii, iv and v e) none of the above
42. Which of the following are the forms of E-banking?
i. Internet Banking
ii. Telephone Banking
iii. Electronic Check conversion
iv. Electronic Bill Payment
v. Direct Deposit
a) i, ii, iii and iv only b) ii, iii, iv and v only c) i, iii, iv and v only
d) All i, ii, iii, iv and v e) None of the above
43. What is the full form of SWIFT?
a) Society for worldwide internet financial telecommunications
b) Secret wide interbank financial telecommunications
c) Society for worldwide interbank financial telecommunication
d) None of the above
44. ATM stands for:
a) Automatic teller machine
b) Automated transfer machine
c) Automated teller machine
d) Asynchronous teller machine
e) Asynchronous transfer machine
45. EFT stands for:
a) Electrical funds transfer
b) Electronic funds transfer
c) Effective free transfer
d) Electronic free transport
e) Effective funds transfer
46. The concept of insurance involves a transfer of ___
a) Liability b) Needs c) Ownership d) Risk e) All of the above
47. Rakesh recently bought a health insurance policy and a personal accident policy. What main section(s) of the insurance market do these products normally fall into?
a) Life insurance in both cases.
b) Life insurance for health and non-life insurance for personal accident.
c) Non-life insurance in both cases.
d) Non-life insurance for health and life insurance for personal accident.
e) All of the above
48. The main role of an underwriter in a non-life insurance company is normally to
a) Assess the acceptability of particular risks
b) Certify a loss when claims are submitted
c) Design the structure of the products to be offered.
d) Negotiate with the industry regulator
e) None of the above
49. Which of the following statements related to General Insurance Corporation of India is NOT correct?
a) It is the sole reinsurance company in the Indian Insurance Market
b) The entire general insurance business in India was nationalized by the Government of India (GOI) through the General Insurance Business (Nationalisation) Act (GIBNA) of 1981
c) It has been active in the Indian Insurance Market with over three decades
d) It is registered office and headquarters is in Mumbai
e) None of the above
50. Which of the following statements is / are correct regarding the Insurance Development Authority?
a) It aims at the protection of the interests of the policy holders
b) As laid down in section 14 of IRDA Act, 1999 it has powers of undertaking inspection of conducting enquiries and investigations into all the companies of insurance business
c) It is an authority of State Government
d) Both (a) and (b) are correct
e) All (a), (b) and (c) are correct
51. Which of the following is NOT one among the various types of insurance?
a) Life Insurance
b) Health Insurance
c) General Insurance
d) Liability Insurance
e) None of the above
52. The Committee which formed to evaluate Indian Insurance industry in 1993 was:
a) Narashimam Committee
b) Chakrovarthy Committee
c) Raja Chelliah Committee
d) Malhotra Committee
e) Goipuria Committee
53. Private sector and foreign company were allowed in Indian insurance sector in the year.
a) 1990 b) 1991 c) 1996 d) 1999 e) 2000
54. In which year the Life Insurance Companies Act and the Provident Fund Act were passed to regulate the insurance business?
a) 1912 b) 1925 c) 1937 d) 1947 e) None of the above
55. Health Insurance Policy introduced by the Government for the people living below poverty line is:
a) Integrated Health Policy b) Cradle Claim c) Medi Claim
d) Jan-Arogya d) Swasthya Bima
56. General Insurance Company was nationalized in the year:
a) 1969 b) 1981 c) 1972 d) 1978 e) 1999
57. Premium in motor insurance is fixed by:
a) IRDA b) Reserve Bank of India c) LIC
d) Tariff Advisory Committee d) All of the above
58. Income Tax concession in general insurance is given under section:
a) 80 D b) 80 C c) 80 CC d) 81 D e) None of the above
59. Motor insurance originated in:
a) USA b) UK c) Germany d) France e) India
60. ‘Reinsurance’ refers to the practice by insurance companies of:
a) Buying insurance from another firm
b) Insuring the same risk twice
c) Issuing new policies
d) Renewing existing policies
e) Terminating existing policies
61. “Yogakshemam Vahamyaham”, the slogan of LIC is derived from which of the following ancient texts?
a) The Rig Veda
b) The Mahabharat
c) The Bhagabad Gita
d) The Manusmriti
e) None of the above
62. “ Yogakshemam Vahamyaham”, the slogan of LIC is written in its logo in:
a) Khorosti b) Devnagiri c) Pali d) Magadhi d) None of the above
63. The Insurance Regulatory Development Authority (IRDA) was established by the recommendation of:
a) Malhotra Committee
b) Narashimam Committee
c) Kelkar Committee
d) Rangarajan Committee
e) Planning Commission of India
64. IRDA has headquartered at:
a) Delhi
b) Mumbai
c) Kolkata
d) Hyderabad
e) Chennai
65. Which of the following is NOT a private sector insurance company in India?
a) United India Insurance Co Ltd
b) Continental Insurance Services
c) ICICI Prudential
d) SBI General Insurance
e) IDBI Federal Life Insurance
ANSWER KEY
| 1. a | 2. c | 3.b | 4. a | 5.d | 6. c | 7. b | 8.c | 9.a | 10.d |
| 11.b | 12.a | 13.b | 14.b | 15.d | 16.c | 17. d | 18. a | 19.c | 20.a |
| 21. b | 22. d | 23. a | 24.a | 25.d | 26.d | 27.b | 28. d | 29. b | 30. e |
| 31. c | 32.c | 33.d | 34.e | 35.a | 36.a | 37.d | 38.d | 39.b | 40.c |
| 41. b | 42.d | 43.d | 44.c | 45.b | 46.d | 47.c | 48.a | 49. b | 50.d |
| 51. d | 52. d | 53.d | 54.a | 55.d | 56.c | 57.a | 58.b | 59.b | 60.a |
| 61. c | 62. b | 63. a | 64. d | 65.a | |||||
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