Financial Markets Test

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Financial Markets Test - 8

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Weekly Quiz Competition

Question 1
1 / -0

A partner of a trading or non trading firm signs a Negotiable instrument liability incurs in ______.

A
the name of the firm.

B
in the name of partner.

C
both a & b.

D
none of the above.

Solution

A partner of a trading or non trading firm signs a Negotiable instrument, liability incurs in the name of the firm. When a maker or holder of the negotiable instrument signs a document, it should be signed in the name of the firm. As one partner is acting on behalf of all other partners in business.
Question 2
1 / -0

Everything mentioned below is required to make the endorsement complete, EXCEPT ________.

A
The holder signs on the face or back of the instrument.

B
The instrument is delivered to the endorsee.

C
It is sighed and delivered with intention of vesting of the endorsee with the rights of the holder.

D
It is sighed and delivered with the intention of vesting the endorsee with the duties of the holder.

Solution

Everything mentioned below is required to make the endorsement complete except it is signed and delivered with intention of vesting the endorsee with the duties of the holder. Endorsement can be defined as an act of a person who is holder of a negotiable instrument in signing his or her name on the back of the instrument, thereby transferring title or ownership.
Question 3
1 / -0

According to Negotiable Instrument Act $$1881$$, which of the following is not the type of promissory note?

A
A promise to pay a certain sum of money to a person.

B
A promise to pay a certain sum of money to the order.

C
A promise to pay the bearer.

D
A promise to pay a certain sum of money at some time.

Solution

According to Negotiable Instrument Act, 1881, a promise to pay the bearer is not the type of promissory note s promissory note can be defined as a written document which states the promise to pay the sum of money to a specified person.
Question 4
1 / -0

A cheque is dishonored by______.

A
non payment only.

B
partial payment.

C
both a & b.

D
none of the above.

Solution

A cheque is dishonored by both non payment as well as partial payment. A cheque gets dishonored when the bank fails to pay the mentioned amount to payee. When the cheque deposited by anybody for collection or presented for payment gets refused by the bank, it is known as dishonor of cheque.
Question 5
1 / -0

An endorsement is said to be a Partial endorsement, if it satisfies which of the following conditions?

A
If the endorser sings his name only

B
If the endorser adds a direction to pay the amount mentioned in the instrument to the order of a specified person

C
If the endorser restricts or excludes the right to further negotiate the instrument

D
If the endorser purports to transfer to the endorsee only a part of the amount payable

Solution

An endorsement is said to be a Partial endorsement, if the endorser purports to transfer to the endorsee only a part of the amount payable. In simple terms, endorsement which allows transferring to the endorsee a part of the amount payable is known as partial endorsement.
Question 6
1 / -0

Promissory is invariably _______.

A
In writing.

B
Definite.

C
Unconditional.

D
All the above.

Solution

Promissory is invariably in writing, definite and unconditional. A promissory can be defined as an instrument in writing containing an unconditional undertaking, signed by the maker, to pay a certain sum of money to or to the order of a certain person, or to the bearer of the instruments.
Question 7
1 / -0

The relationship between the price of a share and the sensex is measurably _____________.

A
Alfa

B
Beta

C
Book value

D
Annuity

Solution

The relationship between the price of a share and the sensex is measurably alfa. It helps to measure the performance of securities. It helps in bench marking fund portfolios and launching of index funds.
Hence, option (A) is the correct answer.
Question 8
1 / -0

Capital market means _____________.

A
Mutual Funds

B
Money Market

C
Securities Market

D
Banking Business
Question 9
1 / -0

For an endorsement to be called as Restrictive endorsement, it should satisfy the following conditions _______.

A
If the endorser signs his name only.

B
If the endorser signs a direction to pay the amount mentioned in the instrument to or to the order of a specified person.

C
If the endorser restricts or excludes the right to further negotiate the instrument.

D
If the endorser purports to transfer to the endorsee only a part of the amount payable.

Solution

For an endorsement to be called as Restrictive endorsement, it should satisfy the following condition- if the endorser restricts or excludes the right to further negotiate the instrument. The result of a restrictive endorsement is that a financial instrument is no longer a negotiable instrument that can be passed from the stated payee to a third party.
Question 10
1 / -0

According to Negotiable Act, $$1881$$, which of the following refer to an instrument in writing (not being a banknote or a currency note) containing unconditional undertaking, signed by the maker to pay or demand or at a fixed or determinable future time or the bearer of the instrument?

A
Promissory note

B
Bill of exchange

C
Cheque

D
Bearer debentures

Solution

According to Negotiable Act, 1881, Bill of Exchange refer to an instrument in writing (not being a banknote or a currency note) containing an unconditional undertaking, signed by the maker to pay or demand or at a fixed or determinable future time or the bearer of the instrument. A bill of exchange can be defined as a written order to a person requiring them to make a specified payment to the payee.

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Re-Attempt Weekly Quiz Competition

Financial Markets Test - 8

Result

Financial Markets Test - 8

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SHARING IS CARING

Question 1

the name of the firm.

in the name of partner.

both a & b.

none of the above.

Solution

Question 2

The holder signs on the face or back of the instrument.

The instrument is delivered to the endorsee.

It is sighed and delivered with intention of vesting of the endorsee with the rights of the holder.

It is sighed and delivered with the intention of vesting the endorsee with the duties of the holder.

Solution

Question 3

A promise to pay a certain sum of money to a person.

A promise to pay a certain sum of money to the order.

A promise to pay the bearer.

A promise to pay a certain sum of money at some time.

Solution

Question 4

non payment only.

partial payment.

both a & b.

none of the above.

Solution

Question 5

If the endorser sings his name only

If the endorser adds a direction to pay the amount mentioned in the instrument to the order of a specified person

If the endorser restricts or excludes the right to further negotiate the instrument

If the endorser purports to transfer to the endorsee only a part of the amount payable

Solution

Question 6

In writing.

Definite.

Unconditional.

All the above.

Solution

Question 7

Alfa

Beta

Book value

Annuity

Solution

Question 8

Mutual Funds

Money Market

Securities Market

Banking Business

Question 9

If the endorser signs his name only.

If the endorser signs a direction to pay the amount mentioned in the instrument to or to the order of a specified person.

If the endorser restricts or excludes the right to further negotiate the instrument.

If the endorser purports to transfer to the endorsee only a part of the amount payable.

Solution

Question 10

Promissory note

Bill of exchange

Cheque

Bearer debentures

Solution

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