SSC CGL Finance – Bills of Exchange – Level 1 · Warm-up

← Back

SSC CGL Finance – Bills of Exchange – Level 1 · Warm-up – 12 questions, subject: Finance & Economics (Tier II Paper III). Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.

Get daily current affairs & exam alerts – follow us YouTube WhatsApp Channel Telegram Channel Facebook Page Instagram
Share with friends & study groups
Link to this page from your website / blog (HTML code)
1.  
A bill of exchange is defined in which section of the Negotiable Instruments Act, 1881?

Correct Answer: D [Section 5]

Explanation:

s. 4 promissory note, s. 5 bill of exchange, s.

2.  
The person who draws a bill of exchange is called the:

Correct Answer: A [drawer]

Explanation:

The maker of the bill (usually the creditor) is the drawer.

3.  
A bill of exchange contains:

Correct Answer: B [an unconditional order to pay]

Explanation:

Order → bill; promise → promissory note.

4.  
For the person who accepts it, a bill of exchange is a:

Correct Answer: C [bill payable (liability)]

Explanation:

The acceptor must pay → liability.

5.  
How many days of grace are allowed on a bill payable three months after date?

Correct Answer: B [3]

Explanation:

NI Act s. 22: three days of grace for period bills.

6.  
Which instrument does NOT need acceptance?

Correct Answer: A [Promissory note]

Explanation:

A note is a promise by the maker himself; no acceptance is needed.

7.  
A bill dated 10 February 2026 is payable 2 months after date. Its due date (no holiday) is:

Correct Answer: C [13 April 2026]

Explanation:

10 April + 3 days of grace = 13 April 2026 (a Monday).

8.  
A bill of ₹ 15,000 with 4 months to run is discounted at 10% p.a. The discount is:

Correct Answer: D [₹ 500]

Explanation:

15,000 × 10 × 4 ÷ 1,200 = 500.

9.  
When the drawer endorses a bill to his creditor, the drawer debits:

Correct Answer: A [the creditor's account]

Explanation:

Creditor A/c Dr, To Bills Receivable A/c.

10.  
Fill in the blankThe fee paid to a Notary Public for recording the dishonour of a bill is called ______.

Correct Answer: B [noting charges]

Explanation:

Noting charges are finally borne by the acceptor.

11.  
A bill that the acceptor pays before its due date is said to be:

Correct Answer: D [retired]

Explanation:

Early payment = retirement (usually with a rebate).

12.  
Odd one out

Correct Answer: C [Promissory note]

Explanation:

Bill, cheque and draft contain an order to pay; a promissory note contains a promise.

➤ Full notes, shortcuts and every answer explained – SSC CGL 2026 Finance & Economics (Tier II Paper III) book (₹149): www.shanmugamiasacademy.in/study-materials/ssc-cgl-finance-economics

📘 SSC CGL 2026 – General Studies – Finance & Economics (Tier II Paper III)
Here you get the answer with a one-line explanation. 1,064 original questions with worked answers · Part A Finance & Accounts and Part B Economics & Governance notes · practice sets + 3 mock tests
Get the book – ₹149 ₹299 →
Score: 0 Answered: 0 / 0