1.

Give the instrument listed herein which is not negotiable as it is beyond the scope of the
Negotiable Instruments Law:

A. Certificate of Deposit
B. Due Bill
C. Post-Office Money Order
D. Trade Acceptance

2.Under the Negotiable Instruments Law, a certificate of stock is not negotiable instrument
because it lacks the requisites of:

A. The instrument must be in writing and signed by the maker or drawer.

B. It must contain an unconditional promise or order to pay a sum certain in money.
C. It must be payable on demand, or at a fixed or determinable future time.
D. It must be payable to order or bearer.

3. This negotiable instrument is always drawn against a bank.

A. Bill of Exchange
B. Check
C. Due Bill
D. Promissory Note

4. Which of the following instruments is not payable to bearer?

A. “Pay to the order of bearer P1,000.00.

To:X Sgd.A”

B. “Pay to the bearer the sum of P1,000.00.

To:X Sgd.”A”

C. “Pay to B or bearer the sum of P1,000.00.

To:X Sgd.”A”

D. “Pay to Cash the sum of P1,000.00.

To:X Sgd.”A”

5. Which of the following instruments is not negotiable for the reason that the instrument is not
payable at a determinable future time.

A.“On the death of X, I promise to pay to the order of B P1,000.00. Sgd.”A”

B. “On or before October 30, 2009, I promise to pay B or his order P1,000.00.
Sgd.”A”

C. “Sixty days after sight, I promise to pay to the order of B P1,000.00. Sgd.”A”

D. “Ten days before the death of X, I promise to pay B or his order P1,000.00.
Sgd.”A”
6. An instrument is considered payable on demand:

A. When no time of payment is expressed.

B. When payable to order.
C. When the last endorsement is in blank.
D. When the last endorsement is restricted.
7. This negotiable instrument is always drawn against a bank:

A. Bill of exchange
B. Check
C. Due bill
D. Promissory note

8. This instrument is negotiable:

A. “I promise to pay P20,000.00” (Signed: Jose Santos).

B. “Pay Pedro Torres or order P20,000.00 if he marries Maria Perez”.(Sgd: Santos)
C. “Good to Mario Cruz or order P20,000.00”. (Sgd: Jose Santos).
D. “I promise to pay Oscar Perez or order 20 cavans of IR Rice in January, 2010”
(Sgd:Jose Santos)

9. When there are three (3) parties, the drawer, the payee and the drawee, the instrument is a:

A. Promissory note
B. Certificate of indebtedness
C. Bank Check
D. Bill of exchange

10. A bill of exchange may be treated and considered a promissory note:

A. When the drawer and the drawee are the same person.
B. When the drawee is fictitious.
C. When the instrument is ambiguous.
D. All of the above.

11. Which of the following instruments is not negotiable?

A. “I agree to pay to the order of A, P30,000.00.” (Sgd. X)

B. “Good to A or order, P30,000.00.” (Sgd. X)
C. “I promise to pay A or order P30,000.00 on June 30.” (Sgd.X)
D. “I promise to pay to A or order P5,000.00.” (Sgd.X)

12. The promise or order is conditional, hence non-negotiable.

A. “I promise to pay to B or order P20,000.00.” (Sgd.Y)

B. “Pay to B or order P20,000.00.” (Addressed to Z, signed by Y)
C. “Pay to B or order P20,000.00 and reimburse yourself out of my money in your
possession.” (Addressed to Z signed, by Y)
D. “Pay to B or order P20,000.00 out of my money in your possession .” (Addressed to
Z, signed by Y) 13. An instrument is payable on demand:

A. When payable to order.

B. When the last endorsement is in blank.
C. When no time of payment is expressed.
D. When payable within a period of time.

14. Which of the following is not necessary in order to make an instrument negotiable?

A. It must be in writing and signed by the maker.

B. It must contain an unconditional promise or order to pay a sum certain in money.
C. It must be payable on demand or at a fixed future time.
D. It must be payable only to a specific person.

15. An instrument is payable on demand:

A. When no time of payment is fixed.

B. When last endorsement is in blank.
C. When the payee is blank.
D. When payable to order.

16. The following is not negotiable:

A. “Pay to C or order, P20,000.00 with exchange at 2.5%.

To: Z Sgd:”M”

B. “Pay to order of C within 6 months from date, the sum of P20,000.00 with interest at
12% per annum.
To:Z Sgd:”M”

C. “Pay to C or bearer P20,000.00 6 months after date. If not paid on due date, I agree to pay
collection and Attorney’s fees.
To:Z Sgd:”M”

D. “Pay to C or order P20,000 in installment.

To:Z Sgd:”M”

17. This party is with primary liability:

A. Maker
B. Drawer
C. Indorser
D. None of the three.

18. If an instrument conforms to the following:

1. It must be in writing and signed by the maker or drawer.

2. It must contain an unconditional promise or order to pay a sum certain in money.
3. It must be payable on demand or at a fixed or determinable future time, and
4. It must be payable to order or to bearer, the instrument is a

A. Check
B. Promissory note
C. Bill of exchange D. Draft

19. Which of the following instruments is negotiable?

A. “Good to Jose Paz or order, P20,000.00.” (Sgd: Pedro Go)

B. “I hereby authorize you to pay Jose Paz or order, P20,000.00 worth in sugar.”
(Sgd: Pedro Go)
C. “I promise to pay Jose Paz or order P20,000 worth in sugar.” (Sgd: Pedro Go)
D. “I promise to pay Jose Paz or order P20,000 on May 25.” (Sgd: Pedro Go)

20. Which of the following is necessary requirement in order to make an instrument negotiable?

A. It must be in writing and signed by the maker.

B. It must be payable on demand or at a fixed future time.
C. It must contain an unconditional promise to pay a sum certain in money.
D. All of the three(3) above.