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IBPS Clerk Negotiable Instruments Act — practice questions — page 3

Explore 73 free Negotiable Instruments Act questions in IBPS Clerk Banking Awareness. Open each question or exercise to read its content, reference answers and available explanation.

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Negotiable Instruments Act questions and exercises with answers

Showing questions 61–73 of 73.

For section 138 the cheque must be presented within:Read the answer and worked solution →The drawer must pay after notice of dishonour within:Read the answer and worked solution →Section 139 raises a presumption in favour of the:Read the answer and worked solution →Under section 140 it is no defence that the drawer did not:Read the answer and worked solution →Under section 141 who else is liable when a company offends?Read the answer and worked solution →Match each term to its meaningRead the answer and worked solution →Promise to pay, or order to pay?Read the answer and worked solution →True or false about negotiable instrumentsRead the answer and worked solution →Order a section 138 prosecutionRead the answer and worked solution →Fill the gaps in section 138Read the answer and worked solution →Sort each cheque by its crossingRead the answer and worked solution →Spot the one that does not fitRead the answer and worked solution →Pick the right answer, quicklyRead the answer and worked solution →

Worked practice questions

For section 138 the cheque must be presented within:

  1. Nine months
  2. Four months
  3. Ten months
  4. Six months
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Correct answer: D. Six months

1. The period of validity may be shorter. 2. Whichever is earlier applies. 3. Otherwise the outer limit is six months from the date drawn. _Source: The Negotiable Instruments Act, 1881 (India Code)_

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The drawer must pay after notice of dishonour within:

  1. Fifteen days
  2. Sixteen days
  3. Sixty days
  4. Seventeen days
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Correct answer: A. Fifteen days

1. The payee or holder in due course makes a demand. 2. The clock runs from receipt of that notice. 3. The drawer has fifteen days to pay. _Source: The Negotiable Instruments Act, 1881 (India Code)_

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Section 139 raises a presumption in favour of the:

  1. Handler
  2. Holder
  3. Hirer
  4. Helper
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Correct answer: B. Holder

1. The presumption stands unless the contrary is proved. 2. It concerns the discharge of a debt or liability. 3. It runs in favour of the holder of the cheque. _Source: The Negotiable Instruments Act, 1881 (India Code)_

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