JAIIB Legal & Regulatory Aspects Of Banking Mock Test Set 18

 Partnership firm doing the banking business cannot have more than 10 partners, and other business not more than 20 partners otherwise it will become illegal association. It is provided under which act.

 


Options are :

  • Companies Act
  • Indian contract Act d) RBI Act
  • Partnership Act
  • Banking regulation Act

Answer :Companies Act

JAIIB Legal & Regulatory Aspects Of Banking Mock Test Set 19

Mr. Sham Lal has opened a saving bank account and made the nomination in the name of Juhi Chawla. After his death she did not approach the bank for payment and in the meanwhile legall1eirs of Mr. Sham Lal produce the probate as well as succession certificate and claimed the payment. 


Options are :

  • Bank will make the payment to legal heirs as per legal certificates
  • Bank will have to act upon succession certificates as it is a court order
  • None of these
  • Payment can be made to nominee only
  • Denial of payment to legal heirs will amount to contempt of court.

Answer :Payment can be made to nominee only

In Camel's Rating - 'E' stands for


Options are :

  • None of these
  • Efficiency
  • Economy
  • Earnings
  • Effectiveness

Answer :Earnings

The process through which any member-owned organisation becomes a shareholder-owned company


Options are :

  • Demutualisation
  • Dematerialisation
  • Forfaiting
  • Securitisation

Answer :Demutualisation

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

If a Letter of Credit is silent about  revocability, then LC is:


Options are :

  • Partially Irrevocable.
  • Irrevocable
  • Partially Revocable
  • Revocable

Answer :Irrevocable

Akbar & Birbal opened a joint account to be operated jointly by both. After the death of Akbar, Birbal approaches the bank and requests to release the amount lying to the credit of the account on the basis of indemnity only. The Bank refused to make the payment to Birbal. What Is the legal position of the Bank?


Options are :

  • Birbal will be asked to obtain succession certificate from a competent Court of Law for claiming the balance in the joint account
  • The balance in the account is payable to the legal heirs of Akbar. The arrangement for operation of account by both Akbar & Birbal (jointly) terminates on the death of either Akbar or Birbal.
  • The Bank has lawfully denied the payment to Birbal, because in the jointly operated account, payment cannot be made to the survivor without taking the consent of the legal heirs of the deceased account holder.
  • The bank should have paid the balance of the account after obtaining letter of indemnity duly stamped and signed by Birbal along with two acceptable sureties

Answer :The Bank has lawfully denied the payment to Birbal, because in the jointly operated account, payment cannot be made to the survivor without taking the consent of the legal heirs of the deceased account holder.

Which committee has given the recommendation "Commencement of employee working hours should be 15 minutes before commencement of business hours"?


Options are :

  • Narsimham Committee
  • None of these
  • Talwar Group
  • Goiporia Committee

Answer :Goiporia Committee

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

Under which irrigation system water is used very economically and supplied drop by drop to the root zone of crop


Options are :

  • Bed Irrigation
  • Sprinkler
  • None Of these
  • Lift
  • Drip irrigation

Answer :Drip irrigation

Mr. Lalit had given an irrevocable power of attorney in favour of Mr. Kishan Kumar to operate the account for a period of 6 years. After two years, Mr. Lalit sends a notice to the bank that the power of attorney in, favour of Mr. Kishan Kumar has been revoked by him. But Mr. Kishan Kumar insists the bank to allow operations. In this situation, how will the bank handle the account?


Options are :

  • None of the above
  • Mr Kishan Kumar will not be allowed to operate the account as all types of power of attorney can be revoked by the principal, and agent has no authority to ask for continuance of the same
  • Mr Kishan Kumar will be allowed to operate the account, as the power of attorney is irrevocable for six years
  • Mr Kishan Kumar will be allowed to operate the account. As per the provision of the Contract Act, agent has authority to ask for specific performance of the contract i.e. to continue the power of attorney.
  • Mr Kishan Kumar will asked to get the legal opinion of the legal counsel and also ask for the damages from the principal if he has suffered loss due to the early termination of the power of attorney

Answer :Mr Kishan Kumar will not be allowed to operate the account as all types of power of attorney can be revoked by the principal, and agent has no authority to ask for continuance of the same

An agreement stamped for Rs. 3 in Chandigarh travels to Meerut. After an year, the agreement is presented for filing a suit


Options are :

  • None of these
  • It may be admissible after paying a fine up to 10 times of the deficiency.
  • It will be inadmissible as evidence as it is under stamped as per UP Stamp Act.
  • It will be inadmissible as evidence as it was not stamped within three months of its arrival.

Answer :It may be admissible after paying a fine up to 10 times of the deficiency.

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

The shareholders of Private limited Co. can


Options are :

  • Transfer the shares to other public
  • Can not transfer the shares to other public
  • Transfer if financial institution permits
  • None of these

Answer :Can not transfer the shares to other public

Documents can be revived or its limitation period can be extended by:

 


Options are :

  • Filing a suit when the court reopens (if the court is in vacation)
  • Part payment before expiry of documents by duly appointed agent of the borrower for this purpose.
  • a & b above
  • All of the above
  • Taking fresh documents before expiry of original documents

Answer :a & b above

NOSTRO account is: 


Options are :

  • Account of Indian bank with a Foreign Bank in foreign currency
  • NRl's account with a Foreign Bank.
  • Foreign banks account with us.
  • RBI's a/c with a Foreign Bank

Answer :Account of Indian bank with a Foreign Bank in foreign currency

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

A Restricted letter of credit is one in which


Options are :

  • Negotiation is restricted to a specific bank.
  • Validity is restricted
  • Amount of LC is restricted
  • Transferability is restricted

Answer :Negotiation is restricted to a specific bank.

A document bears three non­-judicial stamp papers of Rs. 5 each. Borrower neither signs one of the stamp papers nor anything has been written on It. The document will be considered


Options are :

  • Unstamped
  • None of these
  • Admissible for evidence
  • Under-stamped

Answer :Under-stamped

Which of the following states documents attracts different stamp duties in different (except J&K)?


Options are :

  • Acknowledge of debt
  • Bill of lading
  • Bill of exchange
  • Demand promissory note

Answer :Acknowledge of debt

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

To open an Executor Account the Bank should insist on:


Options are :

  • Will of the deceased html
  • Probate
  • Certificate of Registration
  • None of the above

Answer :Probate

Exchange risk in Foreign Currency Non-Resident (FCNR) Account Scheme Deposit is borne by:


Options are :

  • Depositor
  • Banks
  • Government of India
  • RBI

Answer :Banks

Out of the following which is correct


Options are :

  • All of above
  • No appeal can be made against the award of Lok Adalat
  • Every award of Lok Adalat shall be final and binding on all the parties
  • Every award shall be deemed to be a decree of civil court
  • Lok Adalat shall not have a jurisdiction in the matter where the value of the property in dispute exceeds 10 lakhs rupees

Answer :All of above

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

Indemnity means to make good the:


Options are :

  • Loss to the Banker
  • Loss to the guarantor
  • Loss to the promisee / Indemnity holder
  • None of these

Answer :Loss to the promisee / Indemnity holder

M/s Cheat & Clever availing a Term Loan of Rs 10 lac defaulted In repayment of installments. Due to oversight the documents became time-barred. M/s Cheat & Clever was also maintaining a Current account with the branch. Since the borrower had issued cheques from his Current account the borrower visited the branch and deposited Rs 5.500/- for the credit of Current account. However due to oversight the borrower did not mention that the amount deposited was for current account nor the account number was mentioned on the pay in slip. The branch manager on observing the pay-in-slip credited the term loan account. M/s Cheat & Clever approached the bank and argued that since the credit was for Current account. Bank had no right to credit the amount in the term loan account. Do you agree with the contention of the borrower?


Options are :

  • None of the above
  • As per Contract Act, when the borrower has not specified the account number in the pay-in-slip, the bank has the option to credit any account but not time-barred debts
  • Time barred debts are illegal debts and bank has no right to credit the amount in the time barred debts.
  • Since the pay in slip did not contain the details of the accounts in which the amount was to be credited, the bank should have credited suspense account.
  • As per Contract Act, when the borrower has not specified the account number in the pay-in-slip, the bank has the option to credit any account even time-barred debts.

Answer :As per Contract Act, when the borrower has not specified the account number in the pay-in-slip, the bank has the option to credit any account even time-barred debts.

A guarantee was issued on behalf of Rohit by exercising a lien on the Fixed Deposit Receipt of Rohit. Bank is informed about the death of Rohit. A garnishee order is received attaching the deposit of Rohit. The Bank will


Options are :

  • Will attach the FDR
  • Not attach balances in the accounts of deceased
  • Will attach subject to bank's right of set off against any debts owed by Rohit
  • Not exercise the right of set-off as guarantee is only a contingent liability

Answer :Will attach subject to bank's right of set off against any debts owed by Rohit

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

Your branch receives a Letter of Credit from your correspondent bank, and as per the request, your bank advises the L/C to the exporter who is not your customer. .Subsequently, after shipment of the goods, the exporter submits the documents to your branch for negotiation. Since the exporter is not your customer, your dealing officer approaches you for Instructions. How will you handle the situation?


Options are :

  • Advising and confirming L/C are synonymous terms. The advising bank must negotiate the documents otherwise it will be responsible for damages and consequence
  • As the bank advised the L/C, it is bound to negotiate the documents
  • As the beneficiary is not the customer the negotiating bank, the documents will not be accepted and no negotiation will be done
  • Since the bank has only advised the L/C, there is no obligation on the part of the advising bank to negotiate the documents

Answer :Since the bank has only advised the L/C, there is no obligation on the part of the advising bank to negotiate the documents

Economic life of a tractor is


Options are :

  • 9 years
  • 15 years
  • 12 years
  • 10 years

Answer :10 years

9. Documents to be verified before considering Packing Credit limit is:


Options are :

  • PP Form
  • Letter of credit
  • Bill of Lading
  • GR Form

Answer :Letter of credit

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

The rate of revenue stamp is


Options are :

  • Same throughout India except in J & K
  • Varies from state to state
  • Same throughout India
  • None of these

Answer :Same throughout India

Which of the following models is used by RBI for rating of Public Sector Banks?


Options are :

  • CAMEL
  • CAMELS
  • CAMLES
  • CAMLE .

Answer :CAMELS

Mr. Dara, a sole proprietor of M/s Dara Chemicals, has given a power of attorney to his father to operate the account. After his marriage, he comes to the branch along with his wife and wants to give the mandate to his wife to operate the account. How will you handle Mr. Dara's request


Options are :

  • Up to the time earlier power of attorney is not specifically cancelled, Mr Dara, cannot allow his wife to operate the account is acceptance to the cancellation of power of attorney te the account
  • Mr. Dara has the absolute right to give the mandate in favour of his wife and his wife will be allowed to operate the account. father to operate the account.
  • Mr. Dara has no absolute right to give the mandate in favour of his wife till the power of attorney given in favour of his father is cancelled
  • Mr. Dara has the absolute right to give the mandate in favour of his wife but confirmation will be required from his father about his acceptance to the cancellation of power of attorney
  • None of the above

Answer :Mr. Dara has the absolute right to give the mandate in favour of his wife and his wife will be allowed to operate the account. father to operate the account.

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

A Transferable letter of credit can be transferred


Options are :

  • Only once
  • Not more than three times
  • Any number of times
  • Only twice

Answer :Only once

The rule In Clayton's case applies in the case of 


Options are :

  • Term loans only
  • Clear advances only
  • Accounts having credit balances
  • Running accounts having debit balances

Answer :Running accounts having debit balances

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