Question

The Section of Indian Currency Act, which doesn't consider Currency note as a Promissory note and Negotiable instrument.

• A. 15
• B. 34
• C. 21
• D. 42

Answer 1

Answer:

C. 21

NEGOTIABLE INSTRUMENTS:

1. Promissory Note : Sec 4 

2. Bill of Exchange : Sec 5 

3. Cheque : Sec 6 

• Payable either to order or to bearer

• Negotiable instruments are money / cash equivalents 

• These can be converted into liquid cash subject to certain conditions. 

• They play an important role in the economy settlement of debts and claims

• Sec 21 of Indian Currency Act, Currency note is not considered as Promissory note and Negotiable instruments. 

• The transactions involving NI in our country are regulated by the Law Known as the NI Act 1881