JAIIB Legal & Regulatory Aspects Of Banking Mock Test Set 10

Which of the following are the essential features of Law of Evidence? 


Options are :

  • The conditions and contents of a document can be proved before a court only by producing original document.
  • So long original documents rae available, a copy can not be produced
  • However there are certain exceptions to the Law
  • All the above

Answer :All the above

JAIIB Legal & Regulatory Aspects Of Banking Mock Test Set 11

Loan account of Mr. X had running irregular and Y agrees to guarantee the loan under the impression that account is being conducted satisfactorily, Bank did no provide correct information to Y when Y asked the bank about the status of account: 


Options are :

  • Y is not liable on the guarantee as bank kept silence on the material facts
  • Y is not liable because guarantee has been obtained for irregular account
  • Y is liable since it was up to him to give the guarantee or not
  • Since X is liable, Y is liable for the loan being a guarantor

Answer :Y is not liable on the guarantee as bank kept silence on the material facts

A quotation in which the home currency unit is the standard unit and the rate is expressed in variable units of foreign currency is called ......  


Options are :

  • direct rate
  • spot rate
  • indirect rate
  • forward rate

Answer :indirect rate

When conversion/exchange of currencies takes place at some future date at a rate of exchange agreed upon now, such a transaction is known as ...... 


Options are :

  • spot transaction
  • cover transaction
  • cash transaction
  • forward transaction

Answer :forward transaction

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

The maxim applied in respect of Direct Quotation is ...... 


Options are :

  • buy low, sell low
  • buy low, sell high
  • buy high, sell low
  • buy high, sell high

Answer :buy low, sell high

What is the time limit to file a Memorandum of Appeal with Debt Recovery Appellate Tribunal? 


Options are :

  • Within 15 days from the date of Receipt of DRT order
  • Within 30 days from the date of Receipt of DRT order
  • Within 45 days from the date of Receipt of DRT order
  • Within 60 days from the date of Receipt of DRT order

Answer :Within 45 days from the date of Receipt of DRT order

After the Mardia chemicals case, the government brought about an amendment stipulating the deposit amount  for  making  an  appeal under  SARFAESI  Act,    2002.  Accordingly  the  amount  to  be  deposited generally is 


Options are :

  • 10%
  • 25%
  • 50%
  • 100%

Answer :50%

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

Which of the following is correct statements in the context of acceptance of deposits by banks (a) banks can refuse to accept deposit from undesirable persons (b) for opening an account, introductory reference is not mandatory (c) for opening of an account, identification is essential (d) banks can accept deposit of money only


Options are :

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

Answer :A ,c & d only

Main reason for obtaining the photographs in deposit accounts is ...... 


Options are :

  • to avoid frauds
  • to avoid irregularities
  • to detect irregularities in financial transactions
  • to check benami accounts / transactions

Answer :to check benami accounts / transactions

Exposure  norms  are  not  applicable  to  which  of  the  following  types  of  exposures?  (i)  Credit  facilities to weak/sick industrial units under rehabilitation packages, (ii) Food credit, (iii) Loans guaranteed by State Government.


Options are :

  • Only (i) and (ii)
  • Only (i) and (iii)
  • Only (ii) and (iii)
  • (i), (ii) and (iii)

Answer :Only (i) and (ii)

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

A company is ...... and ...... from its members


Options are :

  • Unique and Separate
  • Separate and distinct
  • Distinct and Unique
  • Unique and distinct

Answer :Separate and distinct

The Adhesive Revenue Stamps are affected on 


Options are :

  • Demand Promissory Notes
  • Acknowledgements.
  • Balance Confirmation, Receipts.
  • All the above

Answer :All the above

A contract if entered into by a banking company with any party in contravention of a direction issued by the Reserve Bank ...... 


Options are :

  • shall be invalid
  • shall render the banking co. liable to prosecution for violation of directions
  • shall render the bank and any other party to the contract liable to prosecution for violation of directions.
  • None of the above

Answer :shall render the bank and any other party to the contract liable to prosecution for violation of directions.

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

The penal interest chargeable on a banking company under Section 24 (4) of the BR Act for not maintaining liquid assets as specified under Section Bank 24(2A)(a) of the Act ...... 


Options are :

  • may be waived by the Reserve Bank if its is satisfied that the bank had sufficient cause for the failure
  • has to be charged in all cases and the Reserve Bank has no option to waive penal interest
  • can be reduced by the Reserve Bank
  • None of the above

Answer :may be waived by the Reserve Bank if its is satisfied that the bank had sufficient cause for the failure

The Letter of Credit is opened on the request of 


Options are :

  • Issuing bank
  • Applicant
  • Beneficiary
  • Confirming bank

Answer :Applicant

Under Sale of Goods Act, if the sale is by description of goods, the goods shall correspond with the description. If these do not correspond with the description: 


Options are :

  • Buyer has to buy the goods
  • Seller has to supply the goods as per contract
  • Buyer can rejects the goods and claim back the payment
  • Any of these

Answer :Buyer can rejects the goods and claim back the payment

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

The period of limitation is usually with reference to: 


Options are :

  • The type of security
  • The document which entitles the beneficiary to take action in a court of law
  • Type of loan account
  • All the above

Answer :The document which entitles the beneficiary to take action in a court of law

In  case  of  bank  guarantees  on  behalf  of  companies  that  is  in  liquidation  the  bank  on  invocation  of  the guarantee by the beneficiary. 


Options are :

  • must pay the amount to the Liquidator and not the beneficiary.
  • must deposit the amount in the court to avoid any controversy
  • must pay the beneficiary
  • need not pay, since the bank guarantee lapses on the company being liquidated

Answer :must pay the beneficiary

Act prohibits lending at exorbitant rates and empowers reopening of such contracts.  


Options are :

  • BR Act
  • RBI Act
  • Usurious Loans Act
  • None of the above

Answer :Usurious Loans Act

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

Foreign banks paid up capital and other funds should be (a) minimum Rs.15 lac in the form of deposit with RBI (b) the amount would be Rs.20 lac if the place of business is Mumbai or Kolkata or both (c) 20% of the profit for each year should be deposited with an indian bank (d) central Govt. can relax this condition of its own: 


Options are :

  • A to d all correct
  • A to c only correct
  • A and b only correct
  • A and d only correct

Answer :A and b only correct

RBI can issue direction to banks u/s 21 and u/s 35A of Banking Regulation Act for (a) Sec 21 in public interest (b) Sec 35A in public interest (c) Sec 21 relating to loans (d) Sec 35A relating to loans. Which of these is correct: 


Options are :

  • A and b only
  • A and c only
  • B and c only
  • None of the above

Answer :B and c only

Statutory Corporations are established by Acts of ....... 


Options are :

  • Parliament
  • Indian Trust
  • Wakf
  • Religious and Charitable Endowments

Answer :Parliament

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

Private Trusts are governed by the ...... 


Options are :

  • Parliament Act
  • Indian Trust Act
  • Wakf Act
  • Religious and Charitable Endowments Act

Answer :Indian Trust Act

RBI undertakes banking business for the state govt under the provision of ... 


Options are :

  • Sec 22 of RBI Act
  • Sec 21 of RBI Act
  • Sec 20 of RBI Act
  • Agreement between RBI & Govt u/s 21 A of RBI Act

Answer :Agreement between RBI & Govt u/s 21 A of RBI Act

Under what circumstances a complaint can be lodged with the banking ombudsman 


Options are :

  • if the bank has not settled the issue within a period of two months.
  • the bank has rejected the complaint of the customer
  • the reply given by the bank to the customer was not satisfactory.
  • all the above

Answer :all the above

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

There  is  an  FDR  of  A  and  B  but  A  dies  before  its  maturity.  B  also  dies  one  week  after  his  death.  FD amount is payable to: 

 


Options are :

  • Legal heirs of A
  • Legal heirs of B
  • Legal heirs of A and B
  • legal heirs of the person who died later

Answer :Legal heirs of A and B

What  is  the  necessary  condition  to  be  complied  with  before  lodging  a  complaint  to  banking ombudsman? 


Options are :

  • have made a representation to the concerned bank.
  • bank might have reject ed the complaint or not replied the complaint
  • the reply might have not to the satisfaction of complainant.
  • (a) or (b) or (c)

Answer :(a) or (b) or (c)

What are the formalities the banking ombudsman will comply before passing an award ? 


Options are :

  • if the complaint is not settled within 2 months from the date of receipt of the complaint, the baking ombudsman will inform parties about his intention to pass an award.
  • both the parties may submit further representation or evidences in support their case within 15 days
  • the banking ombudsman will pass an award
  • all the above

Answer :all the above

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

Out  of the under noted statements, which is not correct: 


Options are :

  • Licence from RBI is essential to open a bank- Sec 22 B R Act
  • Every banking company has to use the word bank as part of its name
  • No company other than a banking company can use the word bank or banker as part of its name
  • A firm, group of individuals can use the words banking company as part of their name or for the purpose of business, by giving a public notice

Answer :A firm, group of individuals can use the words banking company as part of their name or for the purpose of business, by giving a public notice

As per Sale of Goods Act, the unpaid seller of goods in possession of the goods, is entitled to retain the possession of the goods until payment of the price is made, in the following cases: 


Options are :

  • If the goods have been sold without any stipulation as to credit
  • If the goods have been sold on credit, but the term of credit has expired
  • If the buyer becomes insolvent
  • Any of the above

Answer :Any of the above

Comment / Suggestion Section
Point our Mistakes and Post Your Suggestions