New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    An instrument which is vague and cannot be clearly

    identified either as a bill of exchange, or as a promissory note, is called as:
    A Bearer instrument Correct Answer Incorrect Answer
    B Ambiguous instrument Correct Answer Incorrect Answer
    C Order instrument Correct Answer Incorrect Answer
    D Inland instrument Correct Answer Incorrect Answer

    Solution

    As per Section 17 of the Negotiable Instruments Act, 1881, an ambiguous instrument is one which may be construed as either a bill of exchange or a promissory note. The holder may treat it as either, at their option.

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