JAIIB Legal & Regulatory Aspects Of Banking Mock Test Set 19

On customer request, the bank has registered the nomination if favor of Mr. Z. Now the customer wants that the name of nominee should be indicated on pass book also: 


Options are :

  • bank does not disclose the information about customer in this manner
  • this can be done at discretion of the bank
  • this can be done as there is request from the customer
  • this cannot be done

Answer :this can be done as there is request from the customer

JAIIB Legal & Regulatory Aspects Of Banking Mock Test Set 2

Stamp duty on which of the following documents does not vary from state to state?


Options are :

  • Guarantee Agreements
  • Bills of Exchange
  • Mortgage Agreements
  • Hypothecation Agreements
  • None of these

Answer :Bills of Exchange

In case of any doubt about stamp duty, clarification can be sought from:

 


Options are :

  • State Stamp Authority
  • Controller of Stamp Duty
  • Both a and b
  • None of these.

Answer :Both a and b

Bank does not recognise trusts, what does it mean? 


Options are :

  • None of these
  • Bank can open trust accounts only for a specific transaction of the trust
  • Bank does not open accounts of private trusts unless they are registered.
  • In absence of specific information, deposit accounts will be presumed to be the property of the account holder
  • Bank opens trust accounts at the risk of trustees

Answer :In absence of specific information, deposit accounts will be presumed to be the property of the account holder

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

An UC in which the terms.. & conditions cannot be amended without the agreement of UC Opening Bank, Applicant & the beneficiary, is called:


Options are :

  • Red Clause UC
  • An Irrevocable LIC
  • Revocable UC
  • Restricted UC.

Answer :An Irrevocable LIC

The purpose of maintaining a ‘documents execution register' Is that


Options are :

  • None of these
  • It ensures completion of all formalities
  • It is a prima facie evidence of execution of documents
  • It is indisputable proof of execution of documents.

Answer :It is a prima facie evidence of execution of documents

A Public Ltd. Co. applied for cash credit limit from United Bank of India, Kolkata. A Director of the company told the bank that the company was having Immovable property situated at Mumbai and its registered office was at Chennai. How can the bank sanction the limit


Options are :

  • Registration of mortgage charge should be with the Registrar of the Companies in whose jurisdiction the properties are situated.
  • The cash credit limit can be granted by a bank in Chennai where the company has its registered office. Loans and advances cannot be raised at other stations
  • The cash credit limit can be granted by a bank situated in Mumbai because the immovable property belonging to the company is in Mumbai
  • The cash credit limit can be sanctioned by any bank either in Chennai or Mumbai because the company has registered office in Chennai and immovable property in Mumbai

Answer :Registration of mortgage charge should be with the Registrar of the Companies in whose jurisdiction the properties are situated.

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

Claused Bill of Lading is one which


Options are :

  • Contains clauses of terms & conditions of Shipping Co.
  • Contains restricted clause of UC
  • Contains clauses relating to the voyage of the ship
  • Narrates the defective condition of the merchandise or one packing or both

Answer :Narrates the defective condition of the merchandise or one packing or both

The term "holder" refers to the person 


Options are :

  • Who has acquired the instrument for consideration
  • Who is in possession of the instrument legally
  • a, c & d
  • Who is entitled to possess the instrument in his own name
  • And to recover the amount there under

Answer :a, c & d

Ram Mohan Shyam Mohan & Co, have been sanctioned credit facilities against the guarantee of Prabhu Nath. The guarantor Prabhu Nath gives notice for withdrawal of the guarantee. Bank informs him that as per guarantee bond, one month notice is essential for withdrawal of the guarantee. Discuss Bank's position.


Options are :

  • On receipt of notice of withdrawal of guarantee, the bank will stop the operations and recall the account, till the letter from the guarantor is not witt1drawn.
  • On receipt of notice of withdrawal of guarantee, bank will rule-off the account and any further operations will have to be discharged jointly by all the partners, to crystallize the liability of the guarantor. Prabhu Nath will be advised of the outstanding liability and that he continues to be liable till the expiry of the notice period.
  • On receipt of notice of withdrawal of guarantee, bank will rule-off the account to crystallize the liability of the guarantor. The firm will be informed of the withdrawal of guarantee by the guarantor, and Prabhu Nath will be advised of the outstanding liability, and that he continues to be liable.
  • On service of the notice by the guarantor, he is automatically discharged and one month's notice is only a formality.

Answer :On receipt of notice of withdrawal of guarantee, bank will rule-off the account to crystallize the liability of the guarantor. The firm will be informed of the withdrawal of guarantee by the guarantor, and Prabhu Nath will be advised of the outstanding liability, and that he continues to be liable.

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

The borrowing power of company is contained in 


Options are :

  • None of the above
  • Memorandum of Association
  • Board resolution
  • Certificate of incorporation

Answer :None of the above

Import bill under LC will be crystallized if not paid within:

 


Options are :

  • 29 days
  • 7 days
  • 10 days
  • 30 days

Answer :10 days

A valued exporter submits the documents for negotiation. The dealing person due to oversight keeps the documents for 10 days. Subsequently on scrutiny of the documents the dealing officer observes a few serious discrepancies in the documents. What are the UPPDC 1993 guidelines in this regard? 


Options are :

  • The issuing 1 confirming 1 nominated bank would have a reasonable time not to exceed 7 banking days, following the day of receipt of the documents. As such, in the above case, the bank is bound to negotiate the documents.
  • The bank will negotiate the documents after taking indemnity and adequate collateral security
  • The bank can decline to negotiate the documents because of discrepancies observed on scrutiny
  • The bank can take upto 21 days to handle the documents

Answer :The issuing 1 confirming 1 nominated bank would have a reasonable time not to exceed 7 banking days, following the day of receipt of the documents. As such, in the above case, the bank is bound to negotiate the documents.

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

To get a loan document executed when partners are at different stations:


Options are :

  • Documents can be executed at different stations. No date needs to be mentioned on the top of the documents
  • Each partner will sign the documents, will put date and name of place under his signature.
  • Both a and c
  • All the partners are required to come to the different branches near the place of their residence for execution of the documents

Answer :Both a and c

Bill of Lading is 


Options are :

  • A document signed by the Captain of the ship acknowledging of receipt of goods on boarding the vessel for shipment
  • A document signed by exporter certifying the goods have been shipped
  • A document signed by Bank to the importer certifying shipment of the goods
  • None of these

Answer :A document signed by the Captain of the ship acknowledging of receipt of goods on boarding the vessel for shipment

 Banking Company is prohibited for undertaking business like trading of goods etc. under which act:

 


Options are :

  • Govt. of India directives
  • RBI Act
  • IBA directives
  • Contract Act
  • Banking Regulation Act

Answer :Banking Regulation Act

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

Your branch had opened a Letter of Credit on behalf of your valued customer. Now your customer approaches you and informs that he has come to know from reliable sources that the exporter has shipped poor quality / sub standard goods and requests you not to reimburse the amount of the bills drawn under LC. How will you handle the situation?


Options are :

  • The importer may be asked to file the suit against the exporter for shipment of sub-standard goods.
  • Bank deals in documents and not in goods. As such, if the documents are in order and there is no discrepancy, the bank is bound to reimburse the amount of the UC to the negotiating bank.
  • Although bank deals in documents and not in goods, it is the responsibility of the bank to protect the interest of his client.
  • Bank should refer the matter to International Chamber of Commerce and seek arbitration.

Answer :Bank deals in documents and not in goods. As such, if the documents are in order and there is no discrepancy, the bank is bound to reimburse the amount of the UC to the negotiating bank.

When a bill matures on a public holiday, the maturity date of the bill falls on


Options are :

  • Next succeeding working day
  • Next succeeding business day
  • Next preceding business day
  • Next preceding working day
  • Both of the above

Answer :Next preceding business day

Garnishee Order' Is an Order


Options are :

  • Court Order obtained by judgment Creditor attaching funds with Bank of Judgment Debtor
  • None of the above
  • Issued by Income Tax Officer to attach money of defaulters
  • Issued by Government to control Black Money

Answer :Court Order obtained by judgment Creditor attaching funds with Bank of Judgment Debtor

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

CC (Pledge) limit of Rs. 10 lacs has been sanctioned to M/s Ramji Lal Tondon Pvt. Ltd. Co. The charge with Registrar of Companies (ROC) has to be registered under Section 125 of Companies Act within:


Options are :

  • 90 days
  • 60 days
  • 120 days
  • 30 days
  • None of the above

Answer :90 days

 'Executor' in Banking means a person: 


Options are :

  • One who is empowered by Branch Manager to execute order against Bad debts.
  • Named by a deceased in his will & for which probate is obtained
  • Who has been executed by Court for improper operation
  • Who wants to execute a case against Bank

Answer :Named by a deceased in his will & for which probate is obtained

A demand promissory note executed in Chandigarh by using revenue stamps purchased in Jammu:

 


Options are :

  • None of these
  • Can be used as evidence in Jammu only
  • Can be used as evidence in Chandigarh
  • Cannot be used as evidence

Answer :Cannot be used as evidence

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

Mortgage is defined in


Options are :

  • Section 58 of Transfer of Property Act 1682
  • Sect.2 of Indian Contract Act
  • Sale of Goods Act
  • Section 104 of Negotiable Instrument Act

Answer :Sect.2 of Indian Contract Act

An Engineer is financed for the purchase of a car. The same may be classified as:


Options are :

  • Transport operator
  • Non Priority Sector
  • Consumption Loan
  • Professional and Self Employed

Answer :Non Priority Sector

 In Non-Resident (External) a/c the principal and interest component is:


Options are :

  • Only principal is repatriable
  • Freely repatriable
  • Non-repatriable
  • Only interest is repatriable

Answer :Freely repatriable

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

The term Pre-shipment Advances is used to describe advances granted


Options are :

  • To exporter undertaking ship­ breaking activity
  • To Importers for taking delivery of consignments from the ship /port
  • For ship-building industry
  • To exporters for the purpose of manufacturing, processing, packaging etc.or simply procouring goods meant for export

Answer :To exporters for the purpose of manufacturing, processing, packaging etc.or simply procouring goods meant for export

 According to the rule in Clayton's case, the moneys paid in by a customer are to be applied towards adjustment in overdraft account:


Options are :

  • As directed by the customer
  • None of the above
  • In the order of time in which the debts were incurred.
  • At the option of the banker
  • As agreed to between the banker and the customer mutually

Answer :In the order of time in which the debts were incurred.

Sec. 45 Z of Banking Regulation Act relates to


Options are :

  • Handing over of original paid cheques to the corporate customer
  • Nomination in case of safe custody articles
  • Nomination in deposit accounts
  • For cancellation of nomination
  • For registration of nomination

Answer :Handing over of original paid cheques to the corporate customer

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

'Limited Company' means


Options are :

  • None of these
  • Limited number of Directors
  • Limited number of share holders
  • Limited liability clause Memorandum

Answer :Limited liability clause Memorandum

Civil Procedure Code provides the provision exemption for arrest in execution of decree for money under Section 56


Options are :

  • Blind
  • Women
  • All the above
  • Illiterate
  • Members of Parliment

Answer :Women

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