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Bills of Exchange MCQ Questions & Answers

Bills of Exchange MCQs : This section focuses on the "Bills of Exchange". These Multiple Choice Questions (MCQs) should be practiced to improve the Bills of Exchange skills required for various interviews (campus interview, walk-in interview, company interview), placement, entrance exam and other competitive examinations.

Question 1

A bill of exchange includes

A. An order to pay
B. A request to pay
C. A promise to pay
D. All the above

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Question 2

What are the three additional days known as that a drawer gives to the drawee for payment

A. Conditional days
B. Additional days
C. Days of grace
D. Days of rebate

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Question 3

What is retiring a bill under rebate means?

A. Making a payment of the bill before the due date
B. Dishonoring of a bill
C. Making a payment of the bill after the due date
D. All of the above

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Question 4

What is the Bill receivable account?

A. Personal Account
B. Machinery Account
C. Real Account
D. Nominal Account

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Question 5

What is the person known as who draws a bill of exchange

A. Drawer
B. Payee
C. Drawee
D. None of the above

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Question 6

What kind of acceptance is known as when the bill is accepted without any condition?

A. Qualified acceptance
B. Conditional acceptance
C. Blank acceptance
D. General acceptance

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Question 7

When the bill is noted from the notary public, it is known as?

A. Noting
B. Discounting
C. Accepting
D. None of the above

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Question 8

When the drawee signs the bill, it is considered as

A. Accepted
B. Retired
C. Renewed
D. Endorsed

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Question 9

Which bill is drawn and accepted in the same country?

A. Trade Bill
B. Foreign Bill
C. Inland Bill
D. Accommodation Bill

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Question 10

Who draws a bill of exchange?

A. Creditor
B. Debtor
C. Holder
D. None of the above

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