Bills of Exchange – Quiz 1

Bills of Exchange is the Eight Unit (Unit 8) under Module A: Accounting Principles and Processes of Paper – III (Accounting & Financial Management for Bankers)

If you are appearing for the Upcoming JAIIB Exams, it is important to understand the fundamental concepts of the Topics and clear your doubts. We have prepare and collected some fundamental questions and answers in the form of MCQ Questions and Answers arranged into multiple Quizzes having 10 Questions in each Quiz. It can help you to understand the topics. A solid fundamental understanding will build your confidence and encourage you to think critically and enables you to answer the JAIIB Questions correctly in the Exam and increase your chances to pass the exam with flying colors. It is advisable to practice these Questions and Answers on regular basis to raise your confidence Level.

Practice MCQ Question and Answer – Bills of Exchange

Quiz 1

1. What are types of instruments of credit used in business transactions ?

  1. Invoices
  2. Bills of Exchange
  3. Promissory Notes
  4. Purchase Orders




….
Answer is (c)
Bills of Exchange and Promissory Notes

2. Who typically writes a promissory note ?





….
Answer is (b)
The debtor

3. What feature describes a bill of exchange ?

  1. It specifies the date by which the amount should be paid
  2. It contains a conditional order to the drawee
  3. It must be drawn and signed by the payee
  4. It is payable in any currency other than legal currency




….
Answer is (a)
It specifies the date by which the amount should be paid

4. Which of the following is NOT a feature of a bill of exchange ?

  1. It must be properly stamped.
  2. It must bear a revenue stamp.
  3. It contains an unconditional order to a person.
  4. It can be drawn and signed by multiple parties.




….
Answer is (d)
It can be drawn and signed by multiple parties

5. Who is the payee in a bill of exchange ?





….
Answer is (b)
The person who is going to receive money

6. What constitutes a promissory note ?





….
Answer is (c)
It is drawn by the buyer promising payment to the seller.

7. Which documents serve as proof of credit existence in business transactions ?

  1. Invoices
  2. Bills of Exchange
  3. Promissory Notes
  4. Receipts




….
Answer is (c)
Bills of Exchange and Promissory Notes

8. What is the drawee in a bill of exchange ?





….
Answer is (d)
The person on whom the bill is drawn

9. What is the requirement regarding the payment currency in a bill of exchange ?

  1. Payment must be made in any currency other than legal currency.
  2. Payment must be made in a negotiable instrument.
  3. Payment must be made in the legal currency of the country.
  4. Payment must be made in the drawer’s preferred currency.




….
Answer is (c)
Payment must be made in the legal currency of the country.

10. Who is the drawer in a bill of exchange ?





….
Answer is (c)
The person who draws and signs the bill

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Quiz Numbers

1

Read More: MCQ Type Questions and Answers from Paper – III (Accounting & Financial Management for Bankers)

Module A: Accounting Principles and Processes

Module B – Financial Statements and Core Banking Systems

  • Balance Sheet Equation
  • Preparation of Final Accounts
  • Company Accounts – I
  • Company Accounts – II
  • Cash Flow & Funds Flow
  • Final Accounts of Banking Companies
  • Core Banking Systems & Accounting in Computerised Environment

Module C – Financial Management

  • Financial Management – An Overview
  • Ratio Analysis
  • Financial Mathematics – Calculation of Interest & Annuities
  • Financial Mathematics – Calculation of YTM
  • Financial Mathematics – Forex Arithmetic
  • Capital Structure and Cost of Capital
  • Capital Investment Decisions/Term Loans
  • Equipment Leasing/Lease Financing
  • Working Capital Management
  • Derivatives

Module D – Taxation and Fundamentals of Costing

  • Taxation: Income Tax/TDS/Deferred Tax
  • Goods & Services Tax
  • An Overview of Cost & Management Accounting
  • Costing Methods
  • Standard Costing
  • Marginal Costing
  • Budgets and Budgetary Control