JAIIB Legal & Regulatory Aspects Of Banking Mock Test Set 1

The mortgage in which the mortgager transfers the possession to the mortgage is called ______ mortgage. In such mortgage, (there is) / (there is no), personal liability of the mortgager. 


Options are :

  • English , there is
  • Mortgage by conditional sale, there is no
  • Simple mortgage, there is no
  • Usufructuary mortgage, there is no

Answer :Usufructuary mortgage, there is no

JAIIB Legal & Regulatory Aspects Of Banking Mock Test Set 10

A mortgage when created through an instrument in writing (called mortgage deed) is required to be registered with _____ within _____ months, if the value of mortgage money is Rs.______. 


Options are :

  • Registrar of Firms, 4 months, 100 or more
  • Registrar of Assurances, 4 months, 100 or more
  • Registrar of Companies,34 months, 100 or more
  • Registrar of Assurances, 3 months, more than Rs.100

Answer :Registrar of Assurances, 4 months, 100 or more

Which of the features of limited liability partnership is not correct as per LLP Act 2008: 


Options are :

  • LLP is a separate legal entity
  • LLP is separate from its partners
  • LLP has perpetual succession. Death of partner does not affect the LLP
  • None of the above

Answer :None of the above

XYZ created equitable mortgage in favour of Bank A on Jan14, 2007 (not registered), a simple mortgage with Bank B on Jan 28, 2007 (and registered on mar 12,2007) and a simple mortgage with Bank C on Feb 10,2007  (and registered on Feb28,2007). The priority of mortgage in this case would be in the following order: 


Options are :

  • Bank C, Bank B and Bank A
  • Bank B, Bank C and Bank A
  • Bank B, Bank A and Bank C
  • Bank A, Bank B and Bank C

Answer :Bank A, Bank B and Bank C

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

Where forged notes or counterfeit currency has been used as genuine, record of such transactions is required to be maintained if the amount of such transaction is: 


Options are :

  • Rs.50000 or above
  • Rs.1 lac or above
  • Rs.10 lac or above
  • All transactions irrespective of amount

Answer :All transactions irrespective of amount

Which among the following can not be deemed to be a contingent credit facility


Options are :

  • Letter of credit
  • Bank guarantee
  • Co- acceptance
  • Overdraft which is not availed

Answer :Overdraft which is not availed

SARFAESI Act has been declared valid by Supreme Court but it struck down Section ______ of the Act, in the case of ______ vs______, which provided for deposit of 75% of the amount due to the bank before approaching DRT: 


Options are :

  • 13, Mardia Chemicals vs ICICI bank Ltd
  • 17(2), Mardia Chemicals vs Union of India & others
  • 13, Mardia Chemicals vs Union of India & others
  • 17, Mardia Chemicals vs Union Bank of India

Answer :17(2), Mardia Chemicals vs Union of India & others

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

To bring them in true with the information technology Act 1999, which of the following Act has not been amended IT Act 1999: 


Options are :

  • Indian Penal Code 1860
  • Indian Evidence Act and Bankers’s Book Evidence Act
  • RBI Actg 1934
  • Companies Act 1956

Answer :Companies Act 1956

The term ‘security interest’ does not include the following, as  far as SARFAESI Act is concerned: 


Options are :

  • Mortgage
  • Hypothecation
  • Pledge & Lien
  • Assignment

Answer :Pledge & Lien

When sake of security is made by the creditor under SARFAESI Act, the sale proceeds are to be utilized (a) first towards costs incidental to preservation and protection of security (b) dues of the secured creditor (c) surplus to person entitled there to in accordance with the rights and interests. 


Options are :

  • A to c all correct
  • Only a and b correct
  • Only b and c correct
  • Only a and c correct

Answer :A to c all correct

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

After receipt of notice of possession from the bank, if the borrower transfers, other than in normal course of business, any of his assets without consent of the bank, what is the punishment under SARFAESI Act: 


Options are :

  • There is punishment in the form of fine only
  • There is punishment in the form of imprisonment up to 2 years
  • The punishment can be in the form of the fine and imprisonment up to 1 year or both
  • There is no provision of any punishment

Answer :The punishment can be in the form of the fine and imprisonment up to 1 year or both

A complaint that is made to Ombudsman should not relate to an issue (a) already settled by Ombudsman (b) pending with a court (c) already decided by a court (d) where limitation period has expired. Which of the following options is correct: 


Options are :

  • A, b and c only
  • B, c and d only
  • A, c and d only
  • A, b , c, d all

Answer :A, b , c, d all

The presiding officer of DRT is called ______, who is appointed by ______ for _______ or until he achieves age of ______. 


Options are :

  • President, Central Govt., 5 year, 62 years
  • President, High Court., 5 year, 62 years
  • President, Central Govt., 3 year, 62 years
  • Chairperson, Central Govt., 5 years, 62 years

Answer :President, Central Govt., 5 year, 62 years

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

In which of the  following mortgages, the property is transferred by the mortgage absolutely with a condition for retransfer by the mortgagee: 


Options are :

  • Simple mortgage
  • English mortgage
  • Equitable mortgage
  • usufructuary mortgage

Answer :English mortgage

Which among the following is a correct statement


Options are :

  • DRT jurisdiction for different banks is with reference to the location of HO of the respective bank
  • Appeal against DRT order can made either to DRAT or to high Court
  • Where a suit has been filed by one bank in DRT, other bank having interest in the case, can join.
  • DRT is not a civil court due to which it cannot pass interim orders like attachment injunction

Answer :Where a suit has been filed by one bank in DRT, other bank having interest in the case, can join.

Bank B has received a notice from Recovery Officer of DRT attaching the balance lying in current  account of XYZ Pvt ltd. 


Options are :

  • The bank will ignore the notice as such authority is not vested with Recovery Officer of DRT
  • The bank will inform the Recovery Officer that his order cannot be complied with as he has no such authority
  • The bank will follow the order as Recovery Officer can issue such order similar to the one given u/s 226 of Income Tax Act
  • The bank will follow the order, because the recovery of due amount of some other bank is involved.

Answer :The bank will follow the order as Recovery Officer can issue such order similar to the one given u/s 226 of Income Tax Act

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

Which of the functions of public and private key match: 


Options are :

  • Private key verifies the digital signatures and public key creates the digital signature
  • Public key verifies the digital signatures and private key creates the digital signature
  • Private key and public key are used to verify the digital signatures
  • Private key and public key are used to create the digital signatures

Answer :Public key verifies the digital signatures and private key creates the digital signature

An agreement that cannot be enforceable by law is called


Options are :

  • Quasi-agreement
  • Void agreement
  • Voidable agreement
  • Immoral agreement

Answer :Void agreement

An agreement that cannot be enforceable by law is called


Options are :

  • Quasi-agreement
  • Void agreement
  • Voidable agreement
  • Immoral agreement

Answer :Void agreement

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

A contract is valid only when there is valid consideration but in case of contract of guarantee, no consideration passes between the bank and the guarantee. The contract is still valid because: 


Options are :

  • Guarantor has signed the contract with his free will
  • Guarantor is a major person and contract with a major person is valid
  • Any thing done for the benefit of the borrower is a sufficient consideration for the guarantor
  • Guarantor’s liability is secondary (as borrower is primarily liable), hence no consideration is required.

Answer :Any thing done for the benefit of the borrower is a sufficient consideration for the guarantor

Which of the following is true in the following cases


Options are :

  • Bailor is the person who receives the goods as a security for the loan
  • When documents are delivered by a customer for safe custody to the bank and bank takes due care but there is loss to documents, bank is liable to the customer
  • If the bailor has knowledge about the defect in the goods due to which bailee suffers loss, the bailor is liable
  • Bailee can use the goods as he likes and is not liable for damages for such use

Answer :If the bailor has knowledge about the defect in the goods due to which bailee suffers loss, the bailor is liable

In the execution of mortgage decree, the decree holder can bring the mortgaged properties to sale: 


Options are :

  • Without first seeking an order of attachment of court
  • After seeking an order of attachment of court
  • After obtaining an order the court
  • None of the above

Answer :Without first seeking an order of attachment of court

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

Under Sale of Goods Act, the term ‘caveat emptor’ stands for: 


Options are :

  • It is a instruction to the buyer to buy only if likes
  • It is a condition binding the buyer and seller to agree to certain conditions of the sale
  • It is a warning for the sale buyer to be cautious while buying
  • It is a right of the seller, whether to sell the goods or not

Answer :It is a warning for the sale buyer to be cautious while buying

X sold certain goods to Y for which he is yet to be paid. As long as the payment is not made by Y,X has (a) lien on the goods for the price of the goods the possession of which is with X (b) if Y becomes insolvent, to stop the goods in transit if X has parted with the possession (c) right of re-sale if goods are in possession of X. which of these is correct: 


Options are :

  • A and b only
  • B and c only
  • A and c only
  • A to c all

Answer :A to c all

A partnership is a contract with following features (which one is not correct): 


Options are :

  • Contract can be oral contract also
  • Contract is to carry any type of business, lawful or otherwise
  • Business is to be carries to make profits and share profits
  • Mutual relationship between partners is of agency

Answer :Contract is to carry any type of business, lawful or otherwise

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

X, the natural guardian of M, the minor, wants to mortgage the property in the name of M to secure a loan for the benefit of the minor: 


Options are :

  • The property in the name of M cannot be mortgaged
  • The property in the name of M can be mortgaged if the loan is for benefit of the minor
  • The property in the name of M can be mortgaged if the loan is for benefit of the minor with permission of court only
  • The property in the name of M can be mortgaged if the loan is for benefit of the minor with permission of Registrar of Assurances

Answer :The property in the name of M can be mortgaged if the loan is for benefit of the minor with permission of court only

As per SEBI guidelines, the minimum % age of independent directors out of total, should be ______, of a _______ company


Options are :

  • 25%, public company
  • 50%, public company
  • 50%, listed company
  • 25%, listed company

Answer :50%, listed company

Your branch is approached by a public limited company to open a current account in their name.  For the purpose of opening the account, they submit the Memorandum and Articles of Association and other papers along with a resolution passed by the Board of the company in a duly held meeting. It is observed from the Articles of Association that the Board of the company should have five directors for the purpose of business decisions, but the resolution has been passed by 4 directors, as the 5 th  one is away to UK in connection with a business trip: .


Options are :

  • Since minimum no. is 3 directors for a public limited company, the account can be opened
  • Since majority of the directors were present at the meeting, the account should be opened
  • Bank can obtain another resolution and in the meantime open the account to increase its business
  • The resolution in its present from is not a proper resolution due to which account cannot be opened

Answer :The resolution in its present from is not a proper resolution due to which account cannot be opened

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

The account of ‘X’ with the Bank  has been attached by an Income Tax attachment order for Rs.50,000/-. The balance in the account of ‘X’ when the order was received was Rs.30,000/-. A remits into the account a sum of Rs.25,000/- subsequently. The amount attached under the order is.... 


Options are :

  • Rs.30,000/-
  • Rs.25,000/-
  • Rs.50,000/-
  • Rs.55,000/-

Answer :Rs.50,000/-

Probate of a Will should be produced for opening of an account 


Options are :

  • in the name of Executor
  • in the name of Administrator
  • in the name of legal heirs of the deceased
  • in the name of Trust created by the deceased

Answer :in the name of Executor

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