Negotiable Instruments Quiz

<p>Hundies</p> Signup and view all the answers

<p>Guaranteeing the payment of a certain sum of money</p> Signup and view all the answers

<p>A negotiable instrument is a document guaranteeing the payment of a certain sum of money, either immediately upon demand or at any predetermined period, and whose payer is typically identified. It serves as a contract that ensures the unconditional payment of money, either immediately or at a later time. Examples of negotiable instruments covered by the Negotiable Instruments Act of 1881 include promissory notes, bills of exchange, and cheques.</p> Signup and view all the answers

<p>The Negotiable Instruments Act of 1881 covers promissory notes, bills of exchange, and cheques as negotiable instruments. However, it does not include financial instruments like hundies, which are prevalent in oriental languages.</p> Signup and view all the answers

<p>The Payment and Settlement Systems Act of 2007 primarily focuses on regulating payment and settlement systems in India. It introduced two additional payment methods, NEFT (National Electronic Fund Transfer) and RTGS (Real Time Gross Settlement), which have revolutionized electronic fund transfers in the country.</p> Signup and view all the answers

<p>Technology has led to the recognition of two additional payment methods, NEFT and RTGS, under the Payment and Settlement Systems Act of 2007. These electronic fund transfer systems have modernized financial transactions by providing efficient and real-time payment solutions.</p> Signup and view all the answers

<p>Negotiable instruments facilitate economic activities and financial transactions by providing a secure and efficient means of payment. For example, cheques enable individuals and businesses to make and receive payments, while promissory notes and bills of exchange serve as crucial financial instruments in commercial transactions, contributing to economic growth and stability.</p> Signup and view all the answers