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Questions and Answers
What is the primary liability of the drawee after accepting a bill of exchange?
What is the primary liability of the drawee after accepting a bill of exchange?
- To negotiate the bill with the payee
- To return the bill to the drawer for further instructions
- To endorse the bill to a third party
- To pay the amount mentioned in the bill unconditionally (correct)
Which of the following is an essential characteristic of a bill of exchange?
Which of the following is an essential characteristic of a bill of exchange?
- Must be payable to bearer on demand
- Should not contain a definite order to pay
- Should be verbally agreed upon instead of in writing
- Must contain an express order to pay (correct)
Can a bill of exchange be made payable to 'bearer on demand' as per Section 31 of RBI Act, 1934?
Can a bill of exchange be made payable to 'bearer on demand' as per Section 31 of RBI Act, 1934?
- No, it is invalid (correct)
- Valid only if the order is to pay money and goods
- Yes, it is valid
- Only valid if the sum is certain
Who is responsible for signing a bill of exchange?
Who is responsible for signing a bill of exchange?
What happens if one person plays the role of both drawer and payee in a bill of exchange?
What happens if one person plays the role of both drawer and payee in a bill of exchange?
What is the main difference between an invalid and a valid bill of exchange?
What is the main difference between an invalid and a valid bill of exchange?
What is the essential characteristic of a bill of exchange that distinguishes it from a promissory note?
What is the essential characteristic of a bill of exchange that distinguishes it from a promissory note?
Which of the following is NOT a characteristic of a bill of exchange?
Which of the following is NOT a characteristic of a bill of exchange?
What is the key difference between a cheque and a bill of exchange?
What is the key difference between a cheque and a bill of exchange?
Which of the following is NOT a characteristic of a bearer instrument?
Which of the following is NOT a characteristic of a bearer instrument?
Which of the following is NOT a characteristic of a bill of exchange?
Which of the following is NOT a characteristic of a bill of exchange?
What is the key difference between a promissory note and a bill of exchange?
What is the key difference between a promissory note and a bill of exchange?
What is the process of a bill of exchange according to the passage?
What is the process of a bill of exchange according to the passage?
What is the key difference between a promissory note and a bill of exchange according to the passage?
What is the key difference between a promissory note and a bill of exchange according to the passage?
According to the passage, what happens when the bill of exchange matures?
According to the passage, what happens when the bill of exchange matures?
What is the key characteristic of a bill of exchange according to the Negotiable Instruments Act, 1881?
What is the key characteristic of a bill of exchange according to the Negotiable Instruments Act, 1881?
Who is the 'payee' in the bill of exchange transaction described in the passage?
Who is the 'payee' in the bill of exchange transaction described in the passage?
