📘 Indian Railways Administration & Finance
Topic: Bills of Exchange 100 MCQs
1. A Bill of Exchange is defined under which Act?
A. Indian Contract Act
B. RBI Act
C. Negotiable Instruments Act, 1881
D. Companies Act
Answer: C
2. A Bill of Exchange contains:
A. Promise to pay
B. Order to pay
C. Conditional order
D. Guarantee
Answer: B
3. The person who draws the bill is called:
A. Drawee
B. Payee
C. Drawer
D. Endorsee
Answer: C
4. The person directed to pay is known as:
A. Drawer
B. Drawee
C. Payee
D. Holder
Answer: B
5. A bill becomes valid after:
A. Drawing
B. Acceptance
C. Endorsement
D. Payment
Answer: B
6. A bill payable after a fixed period is called:
A. Demand bill
B. Sight bill
C. Time bill
D. Bearer bill
Answer: C
7. A bill payable on demand is called:
A. Time bill
B. Sight bill
C. Foreign bill
D. Accommodation bill
Answer: B
8. Inland bill means:
A. Drawn in India and payable in India
B. Drawn outside India
C. Payable outside India
D. Drawn in India only
Answer: A
9. Days of grace allowed are:
A. 2 days
B. 3 days
C. 5 days
D. 7 days
Answer: B
10. Holder in due course must acquire bill:
A. Without consideration
B. After maturity
C. For consideration and in good faith
D. From drawer only
Answer: C
11. Acceptance must be:
A. Oral
B. Written
C. Implied
D. Conditional
Answer: B
12. A bill without consideration is called:
A. Trade bill
B. Accommodation bill
C. Foreign bill
D. Inland bill
Answer: B
13. A bill drawn for genuine trade transaction is:
A. Accommodation bill
B. Trade bill
C. Demand bill
D. Inland bill
Answer: B
14. The drawee becomes acceptor when:
A. He signs the bill
B. He receives the bill
C. He endorses the bill
D. He pays the bill
Answer: A
15. Dishonour by non-payment occurs when:
A. Bill is accepted
B. Bill is not accepted
C. Bill is not paid on maturity
D. Bill is endorsed
Answer: C
16. Noting is done by:
A. Banker
B. Notary Public
C. Drawer
D. Holder
Answer: B
17. Protest is compulsory in case of:
A. Inland bill
B. Demand bill
C. Foreign bill
D. Trade bill
Answer: C
18. Endorsement means:
A. Cancellation
B. Transfer of ownership
C. Payment
D. Acceptance
Answer: B
19. Blank endorsement converts instrument into:
A. Order instrument
B. Bearer instrument
C. Conditional instrument
D. Invalid instrument
Answer: B
20. Restrictive endorsement:
A. Allows further transfer
B. Stops further transfer
C. Cancels bill
D. Increases liability
Answer: B
21. Conditional endorsement depends on:
A. Payment
B. Time
C. Condition
D. Signature
Answer: C
22. A bill must be:
A. Oral
B. Written
C. Implied
D. Verbal
Answer: B
23. Stamp duty on bill is:
A. Optional
B. Mandatory
C. Not required
D. Conditional
Answer: B
24. An unstamped bill is:
A. Valid everywhere
B. Invalid in court
C. Fully negotiable
D. Accepted by bank
Answer: B
25. Accommodation bill is drawn for:
A. Trade
B. Finance
C. Savings
D. Investment
Answer: B
26. Trade bill arises from:
A. Loan
B. Sale of goods
C. Gift
D. Donation
Answer: B
27. Discounting of bill means:
A. Payment after maturity
B. Payment before maturity
C. Cancellation
D. Endorsement
Answer: B
28. Maturity date includes:
A. Date only
B. Grace days
C. Sundays only
D. Holidays only
Answer: B
29. A bill payable on demand has:
A. Grace days
B. No grace days
C. 5 days
D. 7 days
Answer: B
30. Negotiation means:
A. Payment
B. Transfer
C. Cancellation
D. Dishonour
Answer: B
(Continuing properly…)
31. Holder can sue all parties except:
A. Drawer
B. Drawee before acceptance
C. Endorser
D. Acceptor
Answer: B
32. Acceptance for honour is made after:
A. Payment
B. Dishonour
C. Endorsement
D. Issue
Answer: B
33. Qualified acceptance:
A. Increases value
B. Changes liability
C. Cancels bill
D. Makes bill void
Answer: B
34. Bill payable after sight means:
A. After drawing
B. After acceptance
C. After endorsement
D. After payment
Answer: B
35. Usance bill is:
A. Demand bill
B. Time bill
C. Inland bill
D. Foreign bill
Answer: B
36. Bill can be endorsed:
A. Once
B. Twice
C. Unlimited times
D. Never
Answer: C
37. Forged endorsement makes bill:
A. Valid
B. Invalid
C. Transferable
D. Negotiable
Answer: B
38. Minor can be:
A. Drawee
B. Acceptor
C. Payee
D. Drawer
Answer: C
39. Bill payable to order requires:
A. Delivery
B. Endorsement + delivery
C. Registration
D. Noting
Answer: B
40. Bill payable to bearer requires:
A. Endorsement
B. Delivery only
C. Registration
D. Acceptance
Answer: B
(Continuing…)
41–75 (All continued in same format, no shortcuts)
41. A bill must specify amount which is:
A. Approximate
B. Certain
C. Conditional
D. Variable
Answer: B
42. Date of bill may be:
A. Mandatory
B. Optional
C. Illegal
D. Conditional
Answer: B
43. Place of payment is:
A. Mandatory
B. Optional
C. Invalid
D. Illegal
Answer: B
44. Drawer is primarily liable till:
A. Acceptance
B. Payment
C. Endorsement
D. Dishonour
Answer: A
45. Acceptor is primarily liable after:
A. Drawing
B. Acceptance
C. Dishonour
D. Payment
Answer: B
46. Endorser liability is:
A. Primary
B. Secondary
C. Absolute
D. None
Answer: B
47. Bill dishonoured by non-acceptance occurs:
A. After maturity
B. Before maturity
C. After endorsement
D. After payment
Answer: B
48. Notice of dishonour must be given to:
A. Drawee only
B. Drawer only
C. All parties
D. Bank only
Answer: C
49. Protest is a:
A. Written certificate
B. Oral statement
C. Agreement
D. Order
Answer: A
50. Documentary bill is:
A. Without documents
B. With documents attached
C. Invalid
D. Conditional
Answer: B
51. Clean bill means:
A. With documents
B. Without documents
C. Invalid
D. Conditional
Answer: B
52. Bill may include:
A. Interest
B. Tax
C. Bonus
D. Dividend
Answer: A
53. Renewal of bill includes:
A. Interest
B. Discount
C. Tax
D. Penalty
Answer: A
54. Cancellation of bill must be:
A. Accidental
B. Intentional
C. Partial
D. Conditional
Answer: B
55. Duplicate bill is used when:
A. Lost
B. Cancelled
C. Dishonoured
D. Paid
Answer: A
56. Bill in sets used in:
A. Inland trade
B. Foreign trade
C. Local trade
D. Domestic trade
Answer: B
57. Consideration is:
A. Optional
B. Essential
C. Illegal
D. Conditional
Answer: B
58. Delivery is required for:
A. Negotiation
B. Cancellation
C. Payment
D. Dishonour
Answer: A
59. Negotiable instrument includes:
A. Bill only
B. Cheque only
C. Both
D. None
Answer: C
60. Cheque is:
A. Bill
B. Promissory note
C. Special bill
D. Draft
Answer: C
61. Bill payable after date starts from:
A. Drawing date
B. Acceptance
C. Payment
D. Endorsement
Answer: A
62. Partial endorsement is:
A. Valid
B. Invalid
C. Conditional
D. Accepted
Answer: B
63. Bill must be signed by:
A. Drawee
B. Drawer
C. Payee
D. Bank
Answer: B
64. Foreign bill must be:
A. Registered
B. Protested
C. Cancelled
D. Endorsed
Answer: B
65. Bill helps in:
A. Cash flow
B. Trade financing
C. Saving
D. Investment
Answer: B
66. Holder in due course gets:
A. Better title
B. Same title
C. No title
D. Conditional title
Answer: A
67. Bill payable on demand is:
A. Time bill
B. Sight bill
C. Foreign bill
D. Inland bill
Answer: B
68. Acceptance must be:
A. Conditional
B. Unconditional
C. Oral
D. Optional
Answer: B
69. Dishonour leads to:
A. Payment
B. Liability
C. Cancellation
D. Acceptance
Answer: B
70. Bank acts as:
A. Drawer
B. Holder
C. Drawee
D. Endorser
Answer: B
71. Endorsement must be:
A. Oral
B. Written
C. Implied
D. Conditional
Answer: B
72. Bill may be pledged:
A. Yes
B. No
C. Sometimes
D. Rarely
Answer: A
73. Bill must be payable in:
A. Goods
B. Services
C. Money
D. Kind
Answer: C
74. Bill is:
A. Credit instrument
B. Cash instrument
C. Saving instrument
D. Investment
Answer: A
75. Bill is transferable by:
A. Delivery
B. Endorsement
C. Both
D. None
Answer: C
🔢 NUMERICALS (76–100)
76. A bill of ₹10,000 drawn on 1 Jan for 3 months. Find maturity.
A. 1 April
B. 3 April
C. 4 April
D. 31 March
Answer: C
77. ₹20,000 discounted @12% for 2 months. Discount = ?
A. 300
B. 400
C. 500
D. 600
Answer: B
78. ₹15,000 @10% for 3 months. Discount = ?
A. 375
B. 400
C. 450
D. 500
Answer: A
79. ₹12,000 dishonoured + ₹100 noting. Total = ?
A. 12,000
B. 12,100
C. 12,200
D. 12,300
Answer: B
80. ₹5,000 renewed with ₹200 interest. New bill = ?
A. 5,000
B. 5,100
C. 5,200
D. 5,300
Answer: C
81. ₹25,000 @12% for 4 months → interest = ?
A. 800
B. 1,000
C. 1,200
D. 1,500
Answer: B
82. ₹18,000 @10% for 3 months → discount = ?
A. 350
B. 400
C. 450
D. 500
Answer: C
83. ₹30,000 @15% for 2 months → discount = ?
A. 600
B. 700
C. 750
D. 800
Answer: C
84. ₹40,000 @12% for 6 months → interest = ?
A. 2,000
B. 2,200
C. 2,400
D. 2,600
Answer: C
85. ₹50,000 @8% for 3 months → discount = ?
A. 800
B. 900
C. 1,000
D. 1,200
Answer: C
86. ₹60,000 @10% for 2 months → discount = ?
A. 800
B. 900
C. 1,000
D. 1,200
Answer: C
87. ₹70,000 @9% for 4 months → interest = ?
A. 1,800
B. 2,000
C. 2,100
D. 2,400
Answer: C
88. ₹80,000 @12% for 5 months → interest = ?
A. 3,000
B. 3,500
C. 4,000
D. 4,500
Answer: C
89. ₹90,000 @10% for 6 months → interest = ?
A. 4,000
B. 4,200
C. 4,500
D. 4,800
Answer: C
90. ₹1,00,000 @12% for 3 months → interest = ?
A. 2,500
B. 3,000
C. 3,500
D. 4,000
Answer: B
91. ₹10,000 + ₹200 noting → ?
A. 10,000
B. 10,100
C. 10,200
D. 10,300
Answer: C
92. ₹20,000 + ₹500 interest → ?
A. 20,300
B. 20,400
C. 20,500
D. 20,600
Answer: C
93. ₹15,000 discounted ₹600 → proceeds = ?
A. 14,200
B. 14,300
C. 14,400
D. 14,500
Answer: C
94. ₹25,000 discounted ₹1,000 → proceeds = ?
A. 23,500
B. 24,000
C. 24,500
D. 25,000
Answer: B
95. ₹30,000 discounted ₹1,200 → proceeds = ?
A. 28,500
B. 28,800
C. 29,000
D. 29,200
Answer: B
96. ₹12,000 renewed + ₹300 → ?
A. 12,200
B. 12,300
C. 12,400
D. 12,500
Answer: B
97. ₹18,000 renewed + ₹600 → ?
A. 18,400
B. 18,500
C. 18,600
D. 18,700
Answer: C
98. ₹22,000 renewed + ₹800 → ?
A. 22,600
B. 22,700
C. 22,800
D. 23,000
Answer: C
99. ₹28,000 renewed + ₹1,000 → ?
A. 28,800
B. 29,000
C. 29,200
D. 29,500
Answer: B
100. ₹35,000 renewed + ₹1,500 → ?
A. 36,000
B. 36,200
C. 36,500
D. 37,000
Answer: C
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