Question

8. A bank is not obligated to pay a check that is over ____________months old.

                               

a. 1

                               

b. 3

                               

c. 6

                               

d 12

13. The makers of notes or acceptors of drafts are known as ________.

                               

a. parties

                               

b. Secondary parties

                               

c. Brokers of record

                               

d. Secured parties

Answer 1

Answer 8

Option b

As per the regulations of RBI, from 1 April 2012 the cheques and drafts dated 1 April 2012 or later are valid for only 3 months it means the banks are obligated to pay money within three months from date of issue of cheques.

Answer 13

Option a

The makers of notes are called parties because they are the only primarily person related to the notes or drafts.

The secondary parties means the party who agrees to pay or us obligated to pay for on behalf of party who fails to pay his debt on time

Broker on record is a term related to insurance companies brokers. It means the agent who is selected and assigned by the policyholder to handle and manage his all the insurance policies.

Secured parties are the one who looks for their own benefits , they hold the securities in their own interests