BFN104 List of Questions
Q1 What do you understand by Countermand in relation to cheques?
It’s a written order, signed by the drawer (i.e. the customer) that is used by a drawer to notify the drawee (i.e. the bank) to pay the payee without delay.
It’s a written order, signed by the drawer (i.e. the customer) that is used by a drawer to notify the drawee (i.e. the bank) to stop the payment of a cheque, he had previously issued.
It’s an order issued by the drawer of the cheque to the payee to present the cheque after an occurrence of a future event.
It’sa written order, signed by the payee that is used by a drawer to notify the drawee (i.e. the bank) to pay after necessary deductions.
Q2 What is the main distinguishing feature of a Crossed Cheque?
Does not need endorsement.
It can be paid through the counter of the bank.
Has 30 days maturity period.
It is only payable through the bank and not payable over the counter.
Q3 What is the main distinguishing feature of an Open Cheque?
Is one that is payable over the counter.
Is not payable through the bank
Has no limit on the amount casheable.
It cannot be endorsed to another person.
Q4 Who is not a party to a cheque?
Drawer
Payee
Banker
Drawee
Q5 Which is not a characteristic of a cheque?
Amounts in words and figure must correspond.
The drawer’s account need not be correctly specified.
It must not be mutilated.
It must be properly signed by the drawer.
Q6 Which is not a way through which a bill can be discharged?
Where there is a payment in due course by drawee or acceptor.
Where the drawee or acceptor becomes the holder of the bill at or after maturity.
Where through merger the acceptor becomes the holder of the bill at or after maturity.
Where there is no express waiver or renunciation by the holder of the bill
Q7 When is a bill discharged?
When all the orders it contains have been carried out.
When nobody is interested in the bill.
When the bill is of no value again.
When limited liability is still attached.
Q8 Which are the types of Bill Endorsement?
Blank, Special, Unrestrictive and Unconditional.
Blank, Special, Restrictive and Conditional
Blank, Specialty, Unrestrictive and Conditional
Blank, Specialized, Restrictive and Unconditional
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