MCQ Bank

While minors lack the legal capacity to contract, they can open accounts through legal guardians. However, a minor acting completely independently and without legal representation or a guardian cannot open a standard binding contract account by law. Wait, actually, let's look closer: individuals like illiterate or physically handicapped persons are allowed with accommodations, but a minor on their own is legally incompetent. Therefore, none of them are completely barred if proper legal structures exist, or option D? Let's verify standard banking quiz options: minors can open accounts through guardians. But a person who is bankrupt or of unsound mind is barred. Let's check typical banking law MCQs where a minor can open an account with a guardian, but a person of unsound mind cannot. Wait, let's re-evaluate: 'Minor' is often the option in such questions if unrepresented, or 'All of the given options' means none are disallowed because all can open accounts under specific conditions. Let's select D or B? Actually, a minor can open an account with a guardian (as seen in earlier question #5589: 'A minor can open his bank account with his/her... Guardian'). Thus, a minor with a guardian is allowed. Wait, if a minor can open with a guardian, then none of these persons are completely disallowed by law since illiterate, handicapped, and minors (with guardians) can all have bank accounts. Therefore, 'All of the given options' are allowed to have accounts under proper conditions.

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Q121

Which of the following is referred as Bailment?

A) All of the given options
B) The delivery of goods by one person to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the directions of the person delivering them
C) Availing the locker facility from a bank
D) Pledge of stocks as security for availing credit from bank

AI Explanation

Bailment is legally defined as the delivery of goods by one person to another for a specific purpose under a contract, with the condition that the goods be returned or disposed of according to the owner's instructions once the purpose is fulfilled.

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Q122

Which of the followings are the types of agent accounts EXCEPT:_______________.

A) Minor Account
B) Joint account
C) Account of a person without arms
D) Account of visually impaired person

AI Explanation

A joint account is held by two or more co-owners rather than being an agency account where one person acts on behalf of another principal. Minor accounts, accounts of persons without arms, or visually impaired persons often involve legal representatives, attorneys, or authorized agents.

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Q123

Following are the rights of the agent Except:

A) To pass on any benefits to the principal derived by him
B) To be indemnified against consequences of lawful acts
C) To get compensation for any injury caused by principal’s neglect
D) To receive remuneration when due

AI Explanation

Passing on benefits derived to the principal is a fiduciary duty of the agent rather than a right belonging to the agent. Rights of an agent include receiving remuneration, indemnification, and compensation for neglect.

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Q124

Followings can be the holder of promissory note except______________________.

A) Payee
B) Endorsee
C) Drawer
D) Mere Bearer

AI Explanation

A promissory note does not have a 'drawer'; it contains a maker who promises to pay, whereas a bill of exchange or cheque involves a drawer. Therefore, a drawer cannot be a holder of a promissory note.

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Q125

Holder of a promissory note is a person who ________________________.

A) All of the given options
B) Bearer of the instrument
C) Possesses the instrument
D) Entitled to possess the instrument

AI Explanation

Under negotiable instrument laws, a holder is defined not merely as someone who physically possesses the instrument, but as someone who is legally entitled to its possession in their own name and to receive or recover the amount due thereon from the parties liable.

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Q126

Which one of the following negotiable instrument is drawn on a specified banker?

A) Bill of exchange
B) Cheque
C) None of the given options
D) Promissory note

AI Explanation

A cheque is a specific type of bill of exchange that is always drawn on a specified banker and payable on demand. While a general bill of exchange can be drawn on any drawee, a cheque is strictly drawn on a bank.

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Q127

Mr.Aslam draws a cheque of Rs: 10,000 and gives it to Mr.Akram for encashment. Who is the drawee in this case?

A) Mr.Aslam
B) All of the given options
C) Mr.Akram
D) Bank

AI Explanation

In any cheque transaction, the drawer is the account holder who writes the cheque (Mr. Aslam), the payee is the recipient (Mr. Akram), and the drawee is always the financial institution or bank upon which the cheque is drawn.

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Q128

A cheque bearing two traversed line on its face is called __________________________.

A) Order cheque
B) Crossed cheque
C) Bearer cheque
D) Blank cheque

AI Explanation

A crossed cheque features two parallel transverse lines across its face, which directs the paying bank to pay the funds only through a bank account rather than cashing it directly over the counter.