CAIIB 2020 Retail Banking Mock Tests Set 6

Banks have been instructed by the Reserve Bank of India to levy pre-payment charges on home loans taken on floating interest rates at the rate of -


Options are :

  • 1% of loan outstanding balance.
  • 2% of loan outstanding balance.
  • 0.5% of loan outstanding balance.
  • Zero

Answer :Zero

CAIIB 2020 Retail Banking Mock Tests Set 7

Banks should return all the securities / documents/title deeds to mortgaged property within _________ of the repayment of all dues agreed to or contracted.


Options are :

  • 15 days
  • 30 days
  • 3 Months
  • 6 Months

Answer :15 days

When a request for transfer of a borrowal account is received, the bank is required to give its concurrence or otherwise within _________ of receipt of such request.


Options are :

  • 21 days
  • 15 days
  • 4 Months
  • 7 Months

Answer :21 days

What information is the bank required to give the guarantor of a loan?

I)His / Her liability as a guarantor;

II)Whether the liabilities are limited to a specific amount or they are unlimited;

III)Time and circumstances under which he / she may be called upon to discharge the liability

IV) The bank is also required to keep the guarantor informed of any material adverse change in the financial position of the borrower.


Options are :

  • Only I,II
  • Only I,II,III
  • Only I,IV
  • All of the above viz. I,II,III,IV

Answer :All of the above viz. I,II,III,IV

CAIIB 2020 Bank Financial Management Mock Tests Set 1

In case of construction of house/flat a Credit Officer must ensure which of the following points -

I) The land needs to be valued by a panel valuer and approved by the bank.

II) Valuer must comment as to whether construction can be carried out in the plot as per the construction plan submitted by the applicant.

III) The credit officer has to ensure that boundaries are marked.

IV) The construction plan should be approved by the Engineer as to its viability for construction, cost and other factors relevant to construction.


Options are :

  • Only I,III
  • Only I,III,IV
  • Only II,III,IV
  • All of the above viz. I to IV

Answer :All of the above viz. I to IV

In case of purchase of building/flat. The branch should ensure that-

I) The construction has been approved by the local authorities.

II) Tax has been paid upto date on the land and building.

III) The age of the building is to ascertained and to be recorded in the valuation report.

IV) Future life of the building to estimate.


Options are :

  • Only III,IV
  • Only I,III
  • Only II,III
  • All of the above viz. I to IV

Answer :All of the above viz. I to IV

A ________ is an authority given in written to another person to act for and on behalf of the person who executed it.


Options are :

  • Guarantee
  • Power of Attorney
  • Pledge
  • hypothecation

Answer :Power of Attorney

CAIIB 2020 Bank Financial Management Mock Tests Set 10

A power of attorney can be executed by which of the following person?


Options are :

  • a person of sound mind who has attained majority, in favour of a major.
  • a person of sound mind who has attained majority, in favour of a minor.
  • a person of sound mind who is above 10 years of age, in favour of a major.
  • None of the above.

Answer :a person of sound mind who has attained majority, in favour of a major.

Which of the following statement is true w.r.t Power of Attorney?


Options are :

  • Unless expressly or impliedly limited for a particular period, a general power of attorney will continue to be in force until expressly revoked or determined by the death of either of the parties.
  • A special power of attorney to do an act is determined when the act is done.
  • Neither A nor B
  • Both A and B

Answer :Both A and B

Mr. Satish Kumar working as Senior Gazetted Officer in a Government Department having 20 years left over service was recently transferred to Hyderabad. He approached a branch and requested that he is in pursuit of a good house or apartment in Hyderabad for immediate purchase and he requires in principle sanction. Whether the bank accedes to his request? If so, it is valid for how many months?


Options are :

  • No, Bank cannot accede to such request
  • Yes, it is valid for one month
  • Yes, it is valid for three months
  • Yes, it is valid for six months

Answer :Yes, it is valid for three months

CAIIB 2020 Bank Financial Management Mock Tests Set 11

If a power of attorney is executed in a foreign country, it should be stamped within _________ of its being received in India. If it is not so stamped then the same will be deemed to be unstamped and cannot be acted upon.


Options are :

  • 3 months
  • 6 months
  • 12 months
  • 18 months

Answer :3 months

When both Principal (owner of the property) and agent are residing in the same place


Options are :

  • POA is generally not required except in case of property developers.
  • POA is must except in the case of property developers
  • Both A and B
  • Neither A nor B

Answer :Both A and B

If there is no specific clause in the POA as regards the irrevocability, the POA will be treated as _____ and in such cases; it should be verified and ensured that the said POA has not been revoked, form the SRO where the POA was originally registered.


Options are :

  • Special POA
  • General POA
  • revocable POA
  • Irrevocable POA

Answer :revocable POA

CAIIB 2020 Bank Financial Management Mock Tests Set 12

To consider the loan amount under housing loan scheme which of the following statements are true?

I) The property is jointly held with the spouse and the spouse is co-borrower.

II) The property is held in single name and the spouse stands as a guarantor.

III) The borrower's son or daughter who has a steady income, the salary is routed through Bank account and joins as a co-borrower.

IV) Expected rental less taxes, cess, etc., in case the house/flat being purchased is proposed to be rented.

V) Regular income from all sources can be considered to arrive at total eligible loan amount.


Options are :

  • Only III,IV
  • Only I,III,V
  • Only II,III,V
  • All of the above viz. I to V

Answer :All of the above viz. I to V

Thought POA is irrevocable, it gets automatically cancelled on -


Options are :

  • Issue of court order.
  • Principal becomes absconding
  • The death of the Principal.
  • Principal becomes person of unsound mind.

Answer :The death of the Principal.

The POA also contains a ______ whereby the Principal agrees that all acts, deeds and things lawfully done should be construed the act of the Principal and his undertaking to ratify and confirm all such acts done by POA holder.


Options are :

  • cancellation clause
  • ratification clause
  • revocation clause
  • termination clause.

Answer :ratification clause

CAIIB 2020 Bank Financial Management Mock Tests Set 13

The moratorium in case of housing loan is  ________ after the first disbursement of the loan or two months after completion of construction whichever falls first.


Options are :

  • upto 6 months
  • upto 12 months
  • upto 18 months
  • upto 24 months

Answer :upto 18 months

EMI payment usually commences one month after full disbursement. Until final disbursement and repayment commences, the borrower pays interest on the portion of the loan disbursed. This interest is called ______


Options are :

  • pre-EMI interest
  • post-EMI interest
  • early-EMI interest
  • initial-EMI interest

Answer :pre-EMI interest

In the case of salaried persons, a check-off arrangement is pursued. An appropriately worded irrevocable authority for making salary deductions and remittance to the lender is taken from the borrower. The employer is asked to record this authority and convey his acceptance to act on this instruction. This check-off arrangement must have which of the following elements-

I) There will be an irrevocable letter of authority form the borrowers for deducting a specific amount of monthly instalment from his salary/wages.

II) Irrevocable authority for making payment of dues to the lender out of any amount payable to the employee, terminal benefits in case of his/her retirement, resignation, discontinuance of service or death.

III) An undertaking from the employer to obtain a clearance from the bank before setting the dues to the employee on transfer, resignation or retirement.

IV) The check-off mechanism can work through a bank account if salary is paid through a bank; and the bank can record an irrevocable standing instruction to effect payment to the lender.


Options are :

  • Only III,IV
  • Only I,III,IV
  • Only II,III
  • All of the above viz. I to IV

Answer :All of the above viz. I to IV

CAIIB 2020 Bank Financial Management Mock Tests Set 14

Which of the following is required in case of takeover of accounts from other bank/financial institution -


Options are :

  • Subrogation of mortgage agreement.
  • Lease Deed
  • Valuation certificate from the valuer
  • pari-passu charge

Answer :Subrogation of mortgage agreement.

In case of housing loan, Encumbrance Certificate for _____  showing nil encumbrances I generally required by banks.


Options are :

  • 10 years
  • 11 years
  • 12 years
  • 13 years

Answer :13 years

Which of the following documents are required in case of second mortgage/pari-passu charge?

I) Letter from the borrower to the bank (prospective mortgagee) for extending the earlier mortgage to secure the bank's (loan).

II) Pari passu letter to be exchanged.

III) Letter from first charge holder addressed to second charge holder.

IV) Letter to be issued by bank for having second charge on the fixed assets. (This letter is to be addressed by the second charge holder to the first charge holder).


Options are :

  • Only II,III,IV
  • Only I,III,IV
  • Only II,III
  • All of the above viz. I to IV

Answer :All of the above viz. I to IV

CAIIB 2020 Bank Financial Management Mock Tests Set 2

Section 58(a) of the Transfer of Property Act, 1882 defines _______ as "a transfer of an interest in specific immovable property for the purpose of security, for the payment of money advanced or to be advanced by way of a loan, an existing or future debit or the performance of an engagement which may give rise to a pecuniary liability".


Options are :

  • Hypothecation.
  • Pledge
  • Mortgage
  • assignment.

Answer :Mortgage

Where, without delivering possession of the mortgaged property, the mortgagor binds himself personally to pay the mortgage money, and agrees, either expressly or impliedly, that in the event of his failing to pay according to the contract, the mortgagee shall have a right to cause the mortgaged property to be sold and the proceeds of the sale to be applied, so far as may be necessary, in payment of mortgage money, the transaction is called _______.


Options are :

  • Simple registered mortgage.
  • Mortgage by Deposit of Title Deeds
  • Equitable Mortgage
  • None of the above

Answer :Simple registered mortgage.

Registered mortgage involves  -


Options are :

  • preparation of mortgage deed duly witnessed by two witnesses.
  • payment of ad valorem stamp duty.
  • registration of deed.
  • All of the above

Answer :All of the above

CAIIB 2020 Bank Financial Management Mock Tests Set 3

When a person by notification in the Official Gazette, specify in this behalf, delivers to a creditor or his agent documents of title to immovable property, with intent to create a security thereon, the transaction is called a ________


Options are :

  • Simple registered mortgage.
  • Mortgage by Deposit of Title Deeds.
  • Equitable Mortgage.
  • None of the above.

Answer :Mortgage by Deposit of Title Deeds.

The essential requisites of a "Mortgage by Deposit of Title Deeds" are-

I) There must be a debt, existing or future.

II) There must be a deposit of documents of title to immovable property.

III) The deposit must be made in one of the notified towns.

IV) The deposit must be made by in mortgagor or his agent with the mortgagee or his agent.


Options are :

  • Only II,III
  • Only III,IV
  • Only III
  • All of the above viz. I to IV

Answer :All of the above viz. I to IV

Which of the fooling is true w.r.t. transfer of possession in case of simple and equitable mortgage.

I) transfer of possession is not there in case of simple mortgage

II) transfer of possession is not there in case of equitable mortgage

III) transfer of possession is  there in case of simple mortgage

IV) transfer of possession is there in case of equitable mortgage


Options are :

  • Only II,III
  • Only III,IV
  • Only I,II
  • All of the above viz. I to IV

Answer :Only I,II

CAIIB 2020 Bank Financial Management Mock Tests Set 4

Which of the following statement is correct w.r.t mortgagee's right to sue in case of sale of mortgages property?

I) mortgagee can sue in case of simple mortgagee

II) mortgagee can sue in case of  equitable mortgagee

III) mortgagee can't sue in case of simple mortgagee

IV) mortgagee can't sue in case of equitable mortgagee


Options are :

  • Only II,III
  • Only III,IV
  • Only I,II
  • All of the above viz. I to IV

Answer :Only I,II

Which of the following statement is correct w.r.t mortgagee's right to enjoy income out of mortgaged property?

I) mortgagee can enjoy income out of mortgaged property in case of simple mortgaged

II) mortgagee can enjoy income out of mortgaged property in case of equitable mortgaged

III) mortgagee can't enjoy income out of mortgaged property in case of simple mortgaged

IV) mortgagee can't enjoy income out of mortgaged property in case of equitable mortgaged


Options are :

  • Only II,III
  • Only III,IV
  • Only I,II
  • All of the above viz. I to IV

Answer :Only III,IV

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