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      Question

      What is the purpose of the Negotiable Instruments Act,

      1881?  
      A To regulate the financial markets in India Correct Answer Incorrect Answer
      B To regulate the insurance sector instruments in India Correct Answer Incorrect Answer
      C To provide a legal framework for the use of cheques, promissory notes, and bills of exchange Correct Answer Incorrect Answer
      D To regulate the stock exchange instruments in India Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      The Negotiable Instruments Act, 1881 is a law in India that provides a legal framework for the use of negotiable instruments such as cheques, promissory notes, and bills of exchange. The act defines the rights and obligations of parties involved in the use of negotiable instruments and provides legal remedies in case of any disputes. The act also provides guidelines for the endorsement, transfer, and payment of negotiable instruments. The act is important for facilitating the smooth functioning of financial transactions in India. Hence, option C is correct.

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