Bill of Exchange MCQs (1-10)

1. A bill of exchange is an?

(a) A promise

(b) Unconditional order

(c) A request

Correct! Wrong!

2. A person who writes out the order to pay is called?

(a) Drawer

(b) Acceptor

(c) Payee

(d) Drawee

Correct! Wrong!

3. When a drawer discounts the bill, he gets?

(a) More than face value

(b) Less than face value

(c) Equal to face value

(d) None of above

Correct! Wrong!

4. In case of term bill extra three days are given to acceptor are called?

(a) Days of bill payable

(b) Days if bill receivable

(c) Days of grace

(d) Days of tenor

Correct! Wrong!

5. How many parties are involved in case of discounting of bill?

(a) Two

(b) Three

(c) Four

(d) Unlimited

Correct! Wrong!

6. It is a period of time after which a bill becomes payable?

(a) Grace days

(b) Maturity

(c) Usance

(d) Tenor

Correct! Wrong!

7. If the drawer is in need of money and cannot wait till due date and receive the money form bank is called?

(a) Endorsement of bill

(b) Discounting of bill

(c) Retirement of bill

(d) Dishonor of bill

Correct! Wrong!

8. In case if endorsement of bill the endorser debits?

(a) Creditor account

(b) Cash account

(c) Bill receivable account

(d) Bill payable account

Correct! Wrong!

9. Which of the following is not true?

(a) There is no difference in appearance between trade and accommodation bill

(b) A bill of exchange must be accepted

(c) Drawee is maker of a bill

(d) Accommodation bill is for an imaginary transaction

Correct! Wrong!

10. When an acceptor refuses to pay the amount of bill to the holder of bill on its maturity is called?

(a) Honored bill

(b) Dishonored bill

(c) Retired bill

(d) Endorsed bill

Correct! Wrong!

Bill of Exchange MCQs (1-10)

1. A bill of exchange is an?

2. A person who writes out the order to pay is called?

3. When a drawer discounts the bill, he gets?

4. In case of term bill extra three days are given to acceptor are called?

5. How many parties are involved in case of discounting of bill?

6. It is a period of time after which a bill becomes payable?

7. If the drawer is in need of money and cannot wait till due date and receive the money form bank is called?

8. In case if endorsement of bill the endorser debits?

9. Which of the following is not true?

10. When an acceptor refuses to pay the amount of bill to the holder of bill on its maturity is called?

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