MCQ on Discounting of Bills of exchange
Business Mathematics MCQ on Discounting of Bills of exchange
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1. The Simple interest on the present value of a bill is:
(a) True Discount
(b) Banker’s Discount
(c) Cash Discount
(d) Trade Discount
Answer – (a) True Discount
2. The Simple interest on the Bill value of a bill is:
(a) True Discount
(b) Banker’s Discount
(c) Cash Discount
(d) Trade Discount
Answer – (b) Banker’s Discount
3. The Simple interest on the True discount of a bill is:
(a) True Discount
(b) Banker’s Discount
(c) Banker’s Gain
(d) Bill Value
Answer – (c) Banker’s Gain
4. Excess of Banker’s discount over True discount is :
(a) True Discount
(b) Banker’s Discount
(c) Cash Discount
(d) Banker’s Gain
Answer – (d) Banker’s Gain
5. The date which falls after addition of the term of the bill is :
(a) Nominal due date
(b) Legal due date
(c) After date bill
(d) After sight bill
Answer – (a) Normal due date
6. The kind of bill where the nominal date is calculated from the date of acceptance of
the bill is:
(a) Nominal due date
(b) Legal due date
(c) After date bill
(d) After sight bill
Answer – (d) After sight bill
7. The kind of bill where the nominal date is calculated from the date of drawal of the bill is:
(a) Nominal due date
(b) Legal due date
(c) After date bill
(d) After sight bill
Answer – (c) After date bill
8. The date which falls after addition of 3 days of grace in the nominal due date is:
(a) Nominal due date
(b) Legal due date
(c) After date bill
(d) After sight bill
Answer – (b) Legal due date
9. The period between the date of retirement of Bill and the legal due date is:
(a) Nominal due date
(b) Legal due date
(c) Discounting period
(d) After sight bill
Answer – (c) Discounting period
10.The Bills of exchange is regulated by an Act :
(a) Negotiable instrument Act 1881
(b) Bills of exchange Act 1882
(c) Bills of exchange Act 1949
(d) None of the Above
Answer – (a) Negotiable instrument act 1881
11. If The banker’s discount due for 4 months @ 15% = 420.Then The true discount is:
(a) 460
(b) 400
(c) 380
(d) 360
Answer – (b) 400
12.The banker’s gain due for 3 years @ 12% per annum is 270. The banker’s
discount is:
(a) 2010
(b) 1020
(c) 920
(d) 760
Answer – (b)1020
13.The present worth of a sum = Rs.576 , the banker’s gain = Rs. 16. The true discount is
(a) 86
(b) 72
(c) 42
(d) 96
Answer – (d) 96
14.If the legal due date of a bill falls on a usual bank holiday, the Bill is payable on:
(a) The day before
(b) The day after
(c) The same day
(d) Two days after
Answer – (a) The day before
15. The true discount of a bill is equal to
(a)BVxRxT/100+RxT
(b) BV-BD
(c) B.V./1+RxT
(d) PV (1+ Rx T)
Answer – (a) BVxRxT/100+RxT
16. The banker’s discount due 2 years, hence is 11/10 of true discount.
Then the rate of percentage is
(a) 15%
(b) 10%
(c) 5%
(d) 5.5%
Answer – (c) 5%
17. The banker’s discount is Rs. 72 and the true discount is Rs. 60. The sum due is:
(a) 360
(b) 460
(c) 540
(d) ₹ 440
Answer – (a) 360
18.The Banker’s gain on a bill due one year hence at 12% per annum is 60. The true
discount is :
(a) ₹ 720
(b) 360
(c) 540
(d) 500
Answer – (d) 500
19.The present worth of ₹ 930 due 3 years @ 8% per annum is
(a) 950
(b) 850
(c) 750
(d) 700
Answer – (c) 750
20. If true discount on ₹ 360 due 4 years hence is ₹ 60, then rate of interest is :
(a) 5%
(b) 7.5%
(c) 5.5%
(d) 4.5%
Answer – (a) 5%
