Class 11 Finance Important Chapter 13 Negotiable Instruments

Class 11 Finance Important Chapter 13 Negotiable Instruments Solutions English Medium As Per AHSEC New Syllabus to each chapter is provided in the list so that you can easily browse through different chapters ASSEB Class 11 Finance Important Solutions and select need one. AHSEC Class 11 Finance Additional Notes English Medium Download PDF. HS 1st Year Finance Important Solutions in English.

Class 11 Finance Important Chapter 13 Negotiable Instruments

Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. ASSEB Class 11 Banking Additional Question Answer are part of All Subject Solutions. Here we have given HS 1st Year Banking Important Notes in English for All Chapters, You can practice these here.

Negotiable Instruments

Chapter: 13

IMPORTANT QUESTION AND ANSWER

Answer the Following Questions:

1. What is a negotiable instrument?

Ans: A negotiable instrument is a written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, which is transferable by endorsement or delivery.

2. What are the essential features of a promissory note?

Ans: It must be in writing, contain an unconditional promise to pay, signed by the maker, payable to a certain person or bearer, specify a certain amount, be properly stamped, and payable on demand or at a future date.

3. How does a bill of exchange differ from a promissory note?

Ans: A bill of exchange is an order to pay made by the drawer to the drawee and involves three parties, whereas a promissory note is a promise to pay made by the maker and involves two parties.

4. What are the parties involved in a bill of exchange?

Ans: The drawer (makes the order), drawee (person directed to pay), and payee (person to whom payment is made).

5. What are the characteristics of a cheque?

Ans: A cheque is a bill of exchange drawn on a bank, payable on demand, signed by the drawer, payable to a certain person or bearer, and includes electronic images as per the amended law.

6. Explain the difference between a bearer cheque and an order cheque.

Ans: A bearer cheque is payable to whoever holds it and can be encashed without endorsement. An order cheque is payable to a specific person or order and requires endorsement for transfer.

7. What is the significance of crossing on a cheque?

Ans: Crossing adds a layer of security, restricting encashment only through a bank, thereby reducing the risk of theft or unauthorized encashment.

8. What are the advantages and disadvantages of bearer cheques?

Ans: Advantages include easy encashment and transfer without endorsement; disadvantages include high risk of loss or theft.

Fill in the Blanks:

1. The Negotiable Instruments Act was enacted in the year ______.

Ans: 1881.

2. A promissory note contains an unconditional ______ to pay.

Ans: Promise.

3. A cheque is always drawn on a ______.

Ans: Bank.

4. The payee of a cheque must be a ______ person.

Ans: Certain.

5. Crossing a cheque requires two parallel ______ lines.

Ans: Transverse.

Short Notes:

1. Negotiable Instruments.

Ans: Documents that guarantee payment of a specified amount either on demand or at a future date, used to facilitate smooth financial transactions.

2. Promissory Note.

Ans: A written unconditional promise by one party (maker) to pay a certain sum to another party (payee) either on demand or after a fixed time.