JAIIB Legal & Regulatory Aspects Of Banking Mock Test Set 11

In which of the following situations, the limitation period is not three years: 


Options are :

  • Money payable for money lent
  • On a promissory note
  • On a mortgage
  • On arrears of rent

Answer :On a mortgage

JAIIB Legal & Regulatory Aspects Of Banking Mock Test Set 12

Section 12 of Banking Regulation Act stipulates that the subscribed capital of a bank cannot be less than ___ % of its authorized capital and paid up capital cannot be less than _____ % of the subscribed capital 


Options are :

  • 10%,50%
  • 25%,25%
  • 50%,50%
  • 50%,10%

Answer :50%,50%

The owner of a financial asset acquired by a securitisation company is called  


Options are :

  • purchaser
  • seller
  • originator
  • vendor

Answer :originator

The goods in the consumer protection act, includes


Options are :

  • every kind of movable property except money
  • actionable claims, stocks and shares
  • growing) crops and things attached to or forming a part of the land
  • all the above

Answer :all the above

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

Section  22  of  RBI  acts  relate  which  aspects  of  banking  ?  (i)  RBI  authority  to  function  as  bank  for  govt business, (ii) RBI authority to issue & manage currency in India 
 


Options are :

  • Only (i)
  • Only (ii)
  • Either (i) or (ii)
  • Both (i) and (ii)

Answer :Only (ii)

An  irrevocable  LC  which  authorises  the  advising  bank  to  extend  pre-shipment/packing  credit  upto  a certain amount to the beneficiary to enable him to meet pre-shipment expenses is known as a/an ...... 


Options are :

  • Irrevocable LC
  • Transferable LC
  • Revolving LC
  • Red Clause LC

Answer :Red Clause LC

A hires a carriage of B. The carriage is unsafe but B is not aware of it and A is injured. Then B is 


Options are :

  • Responsible for the injury
  • Not responsible for the injury
  • either a or b
  • None of these

Answer :Responsible for the injury

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

When RBI decides to refuse to grant license for banking business, (a) the refusal should be based on relevant and material matters (b) the refusal should be based on germane considerations (c) the refusal cannot be assailed (d) courts can intervene in such decision in all situations: 


Options are :

  • Only a and b is correct
  • Only b and c is correct
  • Only c is correct
  • Only d is not correct

Answer :Only d is not correct

X purchases a hot water bottle from Z, the retailer. On request of X,Z confirms that the bottle is meant to hold hot water. X is injured when hot water is put in the bottle is burst. Under Sale of Goods Act, this is a  


Options are :

  • Breach of condition
  • Breach of warranty
  • Breach of an implied
  • Breach of implied warranty

Answer :Breach of condition

If a bank fails to maintain CRR as per Section 42 (1) of RBI (a) RBI can charge penal interest of 3% OBR for the first fortnight (b) 5% OBR for the next fortnight (c) if the shortfall persist for 3Rd  fortnight also every director, manager or secretary of the bank is punishable with fine (d) RBI can impose penalty for non-maintenance or non-reporting which is required to be paid within 30 days from date of demand: 


Options are :

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

Answer :A, b and c correct

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

Which of the following provisions of B R Act do not match


Options are :

  • License for opening of branch-Sec 23
  • Payment if dividend-Sec 15
  • Paid up capital and reserves- Sec 12
  • Investment in shares of companies –Sec 19(2)

Answer :Paid up capital and reserves- Sec 12

Where the signature of the drawer of a cheque is not genuine, such a cheque is called ...... 


Options are :

  • post-dated cheque
  • forged cheque
  • clearing cheque
  • stale cheque

Answer :forged cheque

‘In this type of payment transaction,  all  shipping  documents,  including  title  documents  are  handled directly by the trading parties. The role of banks is limited to clearing funds as required.’ This statement is true for: 


Options are :

  • Clean payments
  • Bill for collection
  • Documentary Credit
  • None of these

Answer :Clean payments

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

An  ancillary  LC  which  arises  when  the  seller(beneficiary)  uses  the  LC opened  in  his  favour  to  support another LC opened by the Seller’s Bank, favouring his supplier is called ...... 

 


Options are :

  • Transferable LC
  • Back to Back LC
  • Revolving LC
  • none of these

Answer :Back to Back LC

A rate of exchange established between any two currencies on the basis of the respective quotation of each currency in terms of a third currency is known as ...... 


Options are :

  • cross rate
  • merchant rate
  • wash rate
  • composite rate

Answer :cross rate

Which of the following is not correct: 


Options are :

  • Section 21 of Banking Regulation Act authorizes RBI to issue guidelines on credit by banks
  • Section 35-A of B R Act authorizes RBI to issue directives to banks in public interest
  • Section 26 of B R Act stipulates submission of loan related statements by bank to RBI
  • None of the above

Answer :Section 26 of B R Act stipulates submission of loan related statements by bank to RBI

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

A borrower has an immovable property and he is not repaying the loan. Bank wants to recover the loan by sale of this property: 


Options are :

  • Bank can sell the property without filing suit, after taking possession, under provisions of SARFAESI Act.
  • Bank can sell the property without filing suit, after taking possession, under provisions of SARFAESI Act if the property is mortgaged to the bank.
  • Banks can sell the property without filing suit, after taking possession, under provisions of Transfer to property Act
  • Banks can sell the property without filing suit, after taking possession, under provisions of Indian Contract Act

Answer :Bank can sell the property without filing suit, after taking possession, under provisions of SARFAESI Act if the property is mortgaged to the bank.

Which of the following does not match in the context of nomination provisions: 


Options are :

  • Nomination in locker-Section 45 ZE to ZF
  • Nomination in case of joint safe deposit of articles – only one nomination is allowed
  • Nomination in deposit – insolvent or minor can be nominee
  • Nomination in non-resident accounts – Permitted

Answer :Nomination in case of joint safe deposit of articles – only one nomination is allowed

A swap transaction involves ...... 


Options are :

  • purchase of currency
  • sale of currency
  • purchase of currency against sale or forward sale of the currency
  • simultaneous purchase and sale of one currency against another for different settlement dates.

Answer :simultaneous purchase and sale of one currency against another for different settlement dates.

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

If the provision of Transfer of Property Act and SARFAESI Act relating to an immovable property are different: 


Options are :

  • Provisions of Transfer of Property Act would prevail
  • Provisions of SARFAESI Act would prevail
  • Provisions of Transfer of Property Act or SARFAESI Act would prevail at the discretion of the creditor
  • Provisions of Transfer of Property Act or SARFAESI Act would prevail at the discretion of the debtor

Answer :Provisions of SARFAESI Act would prevail

An  L/C  which  can  be  amended  or  cancelled  by  the  Issuing  Bank  at  any  time  prior  to  its  expiry  without notice to the Beneficiary is called a/an ...... 


Options are :

  • Confirmed L/C
  • Irrevocable L/C
  • Revolving L/C
  • Revocable L/C

Answer :Revocable L/C

A L/C  that  cannot  be  cancelled  or  amended  without  the  consent  of  the  parties concerned  is  known  as a/an ...... 

 


Options are :

  • Confirmed L/C
  • Irrevocable L/C
  • Transferable L/C
  • Back to back L/C

Answer :Irrevocable L/C

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

The  rate  quoted  for  inward  remittances  by  TT/DD,  where  the  cover  fund  has  already  been  credited to our Nostro a/c is ...... 


Options are :

  • TT buying rate
  • DD buying rate
  • Inter-Office rate
  • Cross rate

Answer :TT buying rate

Name the different types of ‘R’ returns


Options are :

  • Nostro & Vostro
  • Nostro
  • Vostro
  • Nostro & Vostro, Loro a/c

Answer :Nostro & Vostro

Lok Adalt is organized by


Options are :

  • State authority or district authority
  • Supreme Court legal services committee
  • High Court legal services committee
  • Any of the above

Answer :Any of the above

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

When a securitization company issues a security receipt that is purchased by qualified institutional buyers


Options are :

  • It requires registration with Registrar of Companies
  • It requires registration with Central Registry
  • It requires registration with Registrar of Assurances
  • It does not require any registration

Answer :It does not require any registration

Section 43A of Banking Regulation Act deals with: 


Options are :

  • Notification of rules for preservation of records
  • Rules governing nomination
  • Voluntary winding up of a banking company
  • Preferential payments on liquidation of a bank

Answer :Preferential payments on liquidation of a bank

In documentary credit transactions ...... 


Options are :

  • all parties deal with documents and not goods
  • all parties deal in documents and goods as well
  • buyer and seller deal in goods and banks in documents
  • all parties deal in goods only

Answer :all parties deal with documents and not goods

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

Four  statements  are  given  below.  Some  statements  are  not  possible.  Choose  the  statement  which  is possible 


Options are :

  • A hypothecation can become pledge
  • Pledge and third party pledge there is no difference
  • A mortgage is applicable to Vehicle as security
  • For transfer of goods assignment is used

Answer :A hypothecation can become pledge

Popular Bank makes payment to Y, of a bearer crossed cheque across the counter. The cheque is drawn favour of X. In this case: 


Options are :

  • Bank is liable to the drawer for a wrongful payment
  • Being a bearer cheque, bank can make cash payment o any one
  • Bank is liable to X, the true owner
  • Bank is liable both to the drawer and the true owner

Answer :Bank is liable to X, the true owner

Comment / Suggestion Section
Point our Mistakes and Post Your Suggestions