CHAPTER 5: CHEQUE MCQ

Question 1

Below are examples of negotiable instrument currently accepted and used ni the market EXCEPT

a) cheque
b) bills of exchange
c) promissory notes
d) notice of counter demand

Answer 1

d) notice of counter demand

Question 2

What is the effect of a crossing on a cheque?

a) The paying banker must dishonour the cheque
b) The cheque is no longer payable to the payee at the counter of the bank
c) The cheque can be easily negotiated
d) The cheque can be paid to anyone who holds it

Question 3

Under section 85 of the Bils of Exchange Act 1949, protection is given to the collecting banker under these circumstances EXCEPT

a) when the banker had acted for a customer
b) when the banker had acted ni good faith
c) when the banker had acted without negligence
d) when the banker had paid a cheque that was irregularly indorsed

Answer 3

d) when the banker had paid a cheque that was irregularly indorsed

Question 4

A cheque is ______ if it bears a date earlier than the date of its actual issue.

a) undated
b) overdue
c) ante-dated
d) post-datedq

Answer 4

c) ante-dated

Question 5

Which of the following statements is TRUE about a cheque?

a) A cheque must specify the name of the payee
b) A cheque can be paid cash over the counter
c) A cheque is signed by the drawee
d) A cheque cannot be transferred to another person

Question 6

Which of the following statements is TRUE about a cheque?

a) A cheque must specify the name of the payee
b) A cheque can be paid cash over the counter
c) A cheque is signed by the drawee
d) A cheque cannot be transferred to another person

Question 7

Ashiqa issued acheque for RM600.00 payable to Tarmizi. Tarmizi owed some money to Azim and decided to give the cheque to Azim as payment of the debt. Tarmizi erased his name and wrote Azim’s name on the cheque. Azim is not sure whether he can present the cheque to the bank for payment. What is the correct advice to Azim ni this situation?

a) The bank can pay the cheque if the bank had acted ni good faith
b) The bank can pay the cheque as long as there were sufficient funds ni Ashiqa’s account
c) The bank cannot pay the cheque as it was unlawfully altered
d) The bank cannot pay the cheque as a cheque cannot be transferred
to

Question 8

The person who draws a cheque is called the

a) drawer
b) drawee
c) payee
d) endoser

Answer 8

a) drawer