MCQs on "Bills of Exchange": Find the multiple choice questions on "Bills of Exchange", frequently asked for all competitive examinations.
Here are a few MCQs on Bills of Exchange for your better understanding of the topic.
Q:1.
What is the person writing out the order to pay called?
- A. Drawee
- B. Acceptor
- C. Payee
- D. Drawer
Q:2.
Who does the bank seek payment from if a discounted bill is dishonoured?
- A. Endorser
- B. Drawee
- C. Drawer
- D. Payee
Q:3.
What is the acceptance termed as where a bill is accepted without any particular condition?
- A. Blank acceptance
- B. Qualified acceptance
- C. General acceptance
- D. Unconditional acceptance.
Q:4.
In the same country, which bill can be written and accepted?
- A. Inland bill
- B. Foreign bill
- C. Accommodation bill
- D. Trade bill
Q:5.
Choose from the given options, which are least likely to be the feature of bills of exchange.
- A. A written document
- B. Specifies the date of payment
- C. Accepted by the drawer
- D. An unconditional order.
Q:6.
Choose the correct option concerning the number of parties involved in discounting bills.
- A. Unlimited
- B. Two
- C. Four
- D. Three
Q:7.
The activity of signing on the book of instruments for the aim of transfer by the drawer is called.
- A. Cheque
- B. Bill
- C. Acceptance of bill
- D. Endorsement
Q:8.
Choose the correct option for measuring discounted charges.
- A. Discounted bill amount × Rate × Unexpired Period
- B. Discounted bill amount + Rate × Unexpired Period
- C. Discounted bill amount × Rate ÷ Unexpired Period
- D. Discounted bill amount × Rate + Unexpired Period
Q:9.
Who incurs the interest when a bill is renewed?
- A. Drawer
- B. Acceptor
- C. Endorser
- D. Drawee
Q:10.
What is the bill’s due date if the due date falls on a holiday?
- A. Following day
- B. The same day
- C. After two days
- D. Preceding day.
