21.

Signification by the drawee of his assent to comply with the order of the drawer
is:a . I n d o r s e m e n t
c a c c e p t a n c e b. deliveryd.
presentment for acceptance22. Presentment for acceptance is required whena. the bill is payable after
sight b. the bill requires itc. the bill is drawn payable elsewhere than the residence of the draweed. all of
them23. Protest is required when this bill is
dishonored:a . d o m e s t i c / l o c a l c
. t r a d e a c c e p t a n c e b. foreignd.
all of the above24. The following are promissory notes
except:a . d u e b i l l c . c
e r t i f i c a t e o f d e
p o s i t b. bondd. none of them25.Which of the following is false?a. the acceptor is
primarily liable b. the drawer is secondarily liablec. the issue is not negotiationd. when the drawer and
drawee are the same person the holder consider the bill was anote26. I promise to pay Jose Reyes
or order P 10,000 ten days after the date signed by M asmaker. The note is undated. Which of the following
is correct?a. the note is non negotiable b. the payee can require payment 10 days after issuec. the payee can
require payment at any timed. the payee cannot negotiate the note27. The negotiable promissory note signed
by M as maker for P 10,000 is payable to JoseCruz or bearer on May 10, 2009. M however issued the
note to the payee May 15, 2009.In this case:a. The instrument is considered non-negotiable because the
date of issue is later than thedate of payment. b. Cruz can ask for payment at anytimec. Cruz can require
payments only on May 15, 2009d. Cruz cannot negotiate the note

28. “Pay to Maria or order P 20,000 upon demand”, signed by A as drawer and addressedto B. Maria
negotiated the bill to C, C to D, E stole the bill from D and indorsed it to F byf o r g i n g t h e s i g n a t u r e o f
D . F i n t u r n i n d o r s e d t h e b i l l t o G & G t o H . W h i c h o f t h e following is false?a. all indorsers
prior to the forgery are discharged b. the drawer is liable to Hc. F is liable to Hd. Forgery is real defense29.
M is the maker of a note payable to J. Cruz or order for P 5,000 due July 30, 2009.Cruz borrowed
P 2,000 from C payable July 31, 2009 and pledged the note by indorsingit to C. Which of the following is
correct?a. a promissory note cannot be pledged without the consent of the maker b. On July 30, 2009 C can
collect from M only P 2,000c. on July 30, 2009 C can collect from M P 5,000d. partial indorsement is
allowed3 0 . A i s t h e d r a w e r o f a b i l l a d d r e s s e d t o B , p a y a b l e t o C o r o r d e r 1 0
d a y s a f t e r acceptance for P 8,000. C negotiated the bill to D, to E and E to F. The bill was accepted by B
when presented by F. If the signature of A is forge, which of the following is false?a. B is required to pay F
even if the signature of A is a forgery b. B is not required to pay F since he has the defense of forgeryc.
Forgery is considered a real defensed. If B dishonors the bill by non-payment F may give to any indorse31. M
is the maker of a note, payable to C or order for P 10,000. C negotiated the note toD, D to E, E to F, F to
G and G to H. M dishonored the note when presented by H for payment. H gave notice of dishonor
to F. Which of the following is true.a. all indorsers prior to F are discharged b. only G is dischargedc. H is
required to notify Md. F in turn can give notice to G32. “ Pay to Pedro Reyes or order P 20,000 ten days after
sightSIGNEDBy A drawer as agent of BTo: B

Pedro Reyes negotiated the bill to C, C to D and D to E. B dishonored the bill by non payment.
E gave notice of dishonor to all prior parties except B. Which of the followingis not correct?a. The drawer is
not liable to E b. The drawer is liable to E since he was duly notified of the dishonor c. if D paid E , C
becomes liable to Dd. this bill maybe considered as a note33. M signed a promissory note payable to C
or order for P 5,000 ten days after date. Cindorsed the note to D, D to E and E to F. F, without
authority from the prior parties,altered the amount to P 15,000 then indorsed the note to G.a. the
unauthorized alteration renders the note void b. G cannot require M to pay anythingc. G can require M to pay
only P 5,000 if G is a holder in due coursed. G can require M to pay P 25,000 if G is a holder in due
course3 4 . D r a w e r A a d d r e s s e d a b i l l t o B f o r P 2 0 , 0 0 0 p a y a b l e t o C o r o r d e r 2 0 d a y s
a f t e r acceptance. B made a conditional acceptance in this case:a. the bill becomes non-negotiable b. it is
still negotiable notwithstanding the conditional acceptancec. the holder cannot refuse to take a conditional
acceptanced. B is considered a constructive acceptor 35.M is the maker of a note for P 30,000 payable to C
or bearer. C negotiated the note toD, D to E, E to F and F to M. Which is correct?a. the note is discharged b.
the noted is not discharged since there is no paymentc. M cannot re-issued the noted. The indorsers are not
dischaged36. Drawer A addressed a bill to B payable to C or bearer for P 60,000 upon demand.
Cnegotiated the note to D, D to E, E to F and F to G. Upon proper presentment, B paid the bill. Which of the
following is true?a. the bill is discharged b. persons secondarily liable are likewise dischargedc.the bill is not
required to be presented for acceptanced. all of the above