## MCQ on Discounting of Bills of exchange

Here you can get the **MCQ on Discounting of Bills of exchange**. We are trying to give our best for your MCQ problems. Also Read Business Mathematics MCQ

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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%**