JAIIB Legal & Regulatory Aspects Of Banking Mock Test Set 16

A stipulation collateral to the main purpose of a contract, under the sale of Goods Act is called


Options are :

  • A condition
  • A warranty
  • A guarantee
  • An undertaking

Answer :A warranty

JAIIB Legal & Regulatory Aspects Of Banking Mock Test Set 17

A company has been sanctioned enhanced credit limits by its bank. For modification of change with the register of Companies, which among the following forms are to be used 


Options are :

  • Form 8 and 10
  • Form 8 and 17
  • Form 8
  • Form 10 and 17

Answer :Form 8

The copy of memorandum of association and articles of association of a company is kept with office of RoC and can be inspected by any person due to which it is known aas  ______. 


Options are :

  • Doctrine of indoor management
  • Ultra- vires
  • Doctrine of constructive notice
  • Doctrine of outdoor management

Answer :Doctrine of constructive notice

In the process of issuing a Garnishee order court first issues------------


Options are :

  • Order Nisi
  • Order primary
  • Order attachment
  • Order absolute

Answer :Order Nisi

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

Who is a garnishee in case of a bank account, where a garnishee order is served


Options are :

  • Judgement debtor
  • Judgement creditor
  • Judgement debtor’s debtor
  • Cash credit customer

Answer :Judgement debtor’s debtor

Your branch has received a garnishee order for the account of Mr. ‘X’. What is the first action you are required to take?


Options are :

  • After paying the amount to the court, the customer be informed
  • After paying the amount to Judgement creditor, the customer be informed
  • Stop operations and inform customer
  • None of the above

Answer :Stop operations and inform customer

Mr. Sinha enjoys an overdraft limit of Rs.20,000/-.  The bank has received Garnishee order for Rs.5,000/- when the debit balance in the account is Rs.10,000/-.


Options are :

  • Bank is bound to comply with the garnishee order as there is an arrangement to overdraw
  • Bank is bound to comply with the order as even after paying the garnishee order the balance will be within limit.
  • Bank is not bound to comply with the order as the bank owes no money to the customer
  • None of the above

Answer :Bank is not bound to comply with the order as the bank owes no money to the customer

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

Mr. Ram enjoys an overdraft limit of Rs. 20000/-. The bank has received Garnishee order for Rs. 5000/- when the debit balance in the account is Rs. 10000/-


Options are :

  • Bank is bound to comply with the garnishee order as there is an arrangement to overdraw
  • Bank is bound to comply with the order as even after paying the garnishee order the balance will be within limit
  • Bank is not bound to comply with the order as the bank owes no money to the customer
  • None of the above

Answer :Bank is not bound to comply with the order as the bank owes no money to the customer

Hundies are governed by 


Options are :

  • The Negotiable Instruments Act, 1881
  • The Banking Regulation Act, 1949.
  • Usages and customs prevailing in various parts of the country
  • None of these

Answer :Usages and customs prevailing in various parts of the country

Which of the following group is not included in term goods, as per Sale of Goods Act: 


Options are :

  • Shares & stocks
  • Grass and shares
  • Actionable claims and stock
  • Stock and grass

Answer :Actionable claims and stock

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

Private Sector banks are regulated by (a) Companies Act 1956 (b) Banking Regulation Act 1949 (c) RBI Act 1934 (d) banking Companies (Acquisition & Transfer of Undertakings) Act 1970: 


Options are :

  • a, b and c only
  • b, c and d only
  • a, c and d only
  • a to d all

Answer :a, b and c only

Time required for obtaining a copy of the order or award shall be excluded while computing the limitation period for:  


Options are :

  • Filing review application
  • Filing revision
  • Filing an application to set aside the award
  • All the above

Answer :All the above

In the context of Cooperative Banks, which of the following statements are correct (a) coop bank operating in one State obtains registration under State Coop Societies Act (b) for Coop banks operating in more than one State, Central Govt. appoints Registrar (c) Coop banks are under purview of B R Act u/s 56 (d) Where Coop bank is registered under DICGC Act, RBI can order its winding up. 


Options are :

  • a to d all
  • a to c only
  • a, c and d only
  • b and d only

Answer :a to d all

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

Which of the following statements are not correct in connection with shareholding in an Indian bank under provision of B R Act: 


Options are :

  • There is no ceiling on a person’s holding of shares
  • No shareholder can exercise voting rights in excess of 10% of total voting rights
  • The provision of 10% ceiling restricts the transfer and registration of such transfer
  • The provisions of Companies Act also govern transfer of shares of banking companies

Answer :The provision of 10% ceiling restricts the transfer and registration of such transfer

RBI can appoint Chairman of a bank (a) if the office is lying vacant and not filled immediately (b) if in the opinion of RBI such vacant position is to be against interest of the banking company (c) such appointment shall be maximum for a period of 5 years (d) there is provision for re-appointment after the initial period. 


Options are :

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

Answer :A, b and d are correct

Under Sale of Goods Act, if the sale is by sample, which of the following implied condition is not correct


Options are :

  • Bulk shall correspond with the sample in the quality
  • Buyer shall have an opportunity to compare the bilk with the sample
  • Goods shall be free from any defect, rendering them un-merchantable, which would not be apparent on reasonable examination of the sample
  • None of the above

Answer :None of the above

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

RBI cannot give directions to banks for loans and advances in respect of which of the following


Options are :

  • Purpose of which the loan can be allowed
  • Margin to be maintained for secured advances
  • Maximum amount of loan that may be sanctioned to one company, firm or association pf persons or individual
  • None of the above

Answer :None of the above

Banks are required to transfer a part of their profits to a Reserve Fund (a) u/s 17-1 of B R Act (b) the amount to be transfer is 20% of such profits (c) profits for this purpose are after payment of dividend (d) Central Govt. can exempt a bank from such transfer on RBI recommendations. Which of these is correct: 


Options are :

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

Answer :A, b and d only

If a security is in possession of a bank, it can be sold by the bank


Options are :

  • By filing suit under SARFAESI Act
  • By giving 60 days notice under provisions of SARFAESI Act
  • By giving reasonable time notice under provisions of Indian Contract Act
  • Either under reasonable of SARFAESI Act or Indian Contract Act, at the discretion of the bank

Answer :By giving reasonable time notice under provisions of Indian Contract Act

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

Central Govt. can make rules for preservation of records / books u/s ______ of B R Act, RBI can  make rules u/s ______ of B R Act and banks can return the paid instruments to customers u/s ________ of B R Act


Options are :

  • 45Z, 35, 45Y
  • 45Y, 35A, 45Z
  • 21A, 35A, 51Z
  • 21A, 35A, 45Z

Answer :45Y, 35A, 45Z

A banking company can amalgamate with another banking company of its own, called ______ amalgamation. Central Govt. can also order amalgamation of two banking companies u/s 396 of _______, in consultation with _______. 


Options are :

  • Voluntary, RBI Act, SEBI
  • Voluntary, Companies Act, RBI
  • Voluntary, RBI Act, RBI
  • Voluntary, Companies Act, SEBI

Answer :Voluntary, Companies Act, RBI

Which of the following provisions of SARFAESI Act were amended in the year 2004 after Chemicals vs Union of India and others, judgement of Supreme Court: 


Options are :

  • Sec 17(2), relating to issue of possession notice of 60 days
  • Sec 13(2), relating to issue of possession notice of 60 days
  • Sec 17(2), relating to deposit of 75% amount by borrower before approaching DRT
  • Sec 13(2), relating to deposit of 75% amount by borrower before approaching DRT

Answer :Sec 17(2), relating to deposit of 75% amount by borrower before approaching DRT

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

Under provision of SBI Act 1955, SBI is managed by (a) Board consisting of Chairman, Vice Chairman, maximum two Mg. Directors etc (b) Chairman and Mg. Director are appointed for a period not exceeding 5 years (c) Local Boards are set up where the bank has Local HO (d) Local Boards consists are set up where the bank has Local ho (d) Local Boards consists of Chairman and other elected and nominated members: 


Options are :

  • A to d are correct
  • A to c only are correct
  • B, c and d are correct
  • A, c and d are correct

Answer :A to d are correct

A Lok Adalt has jurisdiction


Options are :

  • To decide a case as per its own judgement
  • To determine and arrive at a compromise or settlement
  • To decide a case as per its own judgement based on evidence produced before it
  • Any of the above

Answer :To determine and arrive at a compromise or settlement

Under provisions of SARFAESI Act, the security receipt evidences


Options are :

  • Undivided right or interest of the purchaser, in the security
  • Independent right or interest of the purchaser, in the security
  • Exclusive right or interest of the purchaser, in the security
  • Exclusive right or interest of the seller, in the security

Answer :Undivided right or interest of the purchaser, in the security

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

Which of the following is not correct with regard to a deferred payment guarantee


Options are :

  • Guarantee is issued normally for purchase of capital assets on long term credit from the supplier
  • Guarantee is issued in lieu of term loan and appraisal is also done like a term loan
  • Difference between TL and such guarantee is of outlay of funds
  • Bank records such guarantees in the balance sheet under the TL in Schedule 9 of bank balance sheet

Answer :Bank records such guarantees in the balance sheet under the TL in Schedule 9 of bank balance sheet

In a LC the documents are to be negotiated in the beginning of September which means that documents can be presented for negotiation during: 


Options are :

  • First week
  • First two days
  • 1 st to 10th of the month
  • 1st to 15th of the month

Answer :1 st to 10th of the month

If there is a contravention of provisions of FEMA 1999 by a person and the amount is not quantifiable, penalty can be levied


Options are :

  • Up to Rs.2 lac
  • Up to amount involved in such contravention
  • Up to two times of amount involved in such contravention
  • Up to thrice the amount involved in such contravention

Answer :Up to Rs.2 lac

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

Which of the following types of charges on the following securities does match


Options are :

  • Book debts- assignment
  • Bank deposits- assignment
  • Immovable property- mortgage
  • National saving certificates – pledge

Answer :National saving certificates – pledge

Which of the following statements is correct: 


Options are :

  • Certificate of incorporation is required by a public company only and not by a private company
  • Certificate of commencement of business is conclusive proof of existence of a company
  • Certificate of incorporation is conclusive proof of existence of a company
  • Certificate of commencement of business is required by a private company only

Answer :Certificate of incorporation is conclusive proof of existence of a company

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