Every Book Back multiple-choice question from The Negotiable Instruments Act, 1881 (12th Standard Commerce, Samacheer Kalvi) — each with the correct option highlighted and a clear, worked explanation. Free to read in English and Tamil.
Negotiable Instrument Act was passed in the year ______.
A. 1981
B. 1881Correct
C. 1994
D. 1818
Explanation. The law relating to negotiable instruments is contained in the Negotiable Instruments Act 1881, which deals with promissory notes, bills of exchange and cheques.
Q2
Number of parties in a bill of exchange are
A. 2
B. 6
C. 3Correct
D. 4
Explanation. A bill of exchange has three parties: the drawer, the drawee and the payee. A promissory note, by contrast, has only two parties, the maker and the payee.
Q3
Section 6 of Negotiable Instruments Act 1881 deals with
A. Promissory Note
B. Bills of exchange
C. ChequeCorrect
D. None of the above
Explanation. Section 6 defines a cheque as a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand. Section 4 covers the promissory note and Section 5 the bill of exchange.
Q4
_______ cannot be a bearer instrument.
A. Cheque
B. Promissory NoteCorrect
C. Bills of exchange
D. None of the above
Explanation. A promissory note cannot be made payable to bearer; one originally made payable to bearer is illegal. A cheque may be payable to order or to bearer, and a bill can be drawn payable to bearer.
Q5
A cheque will become stale after _____ months of its date:
A. 3Correct
B. 4
C. 5
D. 1
Explanation. The answer key printed in both the English and Tamil books gives 3 months: a cheque not presented within three months of its date becomes stale. The lesson text itself does not discuss stale cheques.
About these The Negotiable Instruments Act, 1881 questions
These are the Book Back multiple-choice questions for The Negotiable Instruments Act, 1881 from the Tamil Nadu State Board (Samacheer Kalvi) 12th Standard Commerce syllabus. Each question shows the correct option and an original, step-by-step explanation so you understand the method, not just the answer. Use the answer key above to jump to any question, then take the practice test to check yourself under exam-like conditions.
Frequently asked questions
How many MCQs are there in The Negotiable Instruments Act, 1881?
This chapter has 5 book-back multiple-choice questions, each with the correct answer and a step-by-step explanation.
Are these 12th Standard Commerce MCQs free to practise online?
Yes. Every question, answer and explanation here is free, and you can also take them as a timed practice test.
Where can I find the The Negotiable Instruments Act, 1881 book-back answers?
The correct option for each question is highlighted on this page with a worked explanation, plus a quick answer-key summary at the top.
