Page 174 - DMGT303_BANKING_AND_INSURANCE

Unit 8: Negotiable Instruments

10. State the three parties involved in a bill of exchange. Notes
11. Define Promissory note and state its any four important features.
12. State the important features of a bill of exchange.
13. Give the definition of a 'cheque'. How does it differ from a bill of exchange?

14. "There are different types of Hundis used in our country". Do you agree? State any two
important varieties of Hundis.
15. "Negotiable means transferable and instrument means documents. Thus, negotiable
instrument means a transferable document." But apart from these, there are other essential
features of a negotiable instrument. State any six.

16. What are the different types of cheques? Distinguish between open cheque and crossed
cheque.
17. What is meant by negotiation? How is it effected and how does it differ from an assignment?

18. Define endorsement. What are the various classes of endorsement?
19. Explain the privileges granted to a holder in due course.
20. In what different ways may a negotiable instrument be dishonoured? What are the duties
of a holder of a dishonoured bill?
21. How and when should a notice be served on a bill being dishonoured by either
non-acceptance or non-payment? Under what circumstances is notice of dishonour
unnecessary?
22. What are the various ways in which one or more parties to a negotiable instrument is/are
discharged for liability? Discuss.
23. Define the term 'negotiable instrument'. What are its essential characteristics?
24. Discuss the presumptions in respect of a negotiable instrument.
25. What is a bill of exchange? How does it differ from a promissory note?

26. Who are the parties to a negotiable instrument? Discuss.

Answers: Self Assessment

1. Payee 2. Endorsement
3. Drawer/Maker 4. Endorser
5. Indian Stamp 6. False

7. False 8. False
9. False 10. False
11. Management 12. Guarantee

13. Overdraft 14. Loan
15. Implementation

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