JAIIB Legal & Regulatory Aspects Of Banking Mock Test Set 3

Attachment Order is issued by---------------- 


Options are :

  • The RBI to scheduled bank for stopping payment in an account
  • The competent court for attaching funds due to a judgement debtor by a third party for payment to the judgement creditor
  • The Income Tax Recovery Officer attaching funds in the account maintained by the bank
  • The district Magistrate requiring the bank to remit to his office a certain sum of money to the debit of particular account

Answer :The Income Tax Recovery Officer attaching funds in the account maintained by the bank

JAIIB Legal & Regulatory Aspects Of Banking Mock Test Set 4

Which of the following is correct


Options are :

  • A bank can exercise his right of set off when the two accounts are in the same name and right without any notice to the account holder.
  • A banker can exercise his right of set off when the two accounts are in the same name and right but only with a reasonable notice to the account holder.
  • A banker can exercise his right of set off when the two accounts are in the same name, even though not in the same right

Answer :A banker can exercise his right of set off when the two accounts are in the same name and right but only with a reasonable notice to the account holder.

A contract of Insurance is a contract of 


Options are :

  • Indemnity
  • Pledge
  • Guarantee
  • Hypothecation

Answer :Indemnity

Which of the following definition as per Sales of Goods Act is not correctly stated


Options are :

  • Buyer is a person who agrees to buy goods
  • Seller is a person who sells goods
  • Voluntary transfer of possession from seller to buyer means delivery
  • None of the above

Answer :None of the above

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

The  monetary  and  credit  policy  statement  of  RBI  are  not  called  ......  (i)  Annual  Policy  Statement,  (ii) Credit policy of RBI, (iii) Economic Policy 


Options are :

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

Answer :Only (ii) and (iii)

In  a  Bill  of  exchange  normally  who  is  not  the  Drawee?  (i)  The  person  ordering  for  payment,  (ii)  The person directed to pay, (iii) The beneficiary 


Options are :

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

Answer :Only (i) and (iii)

Under  open  cash  credit,  the  goods  are  taken  as  security,  without  transferring  ......  (i)  ownership  of  goods, (iii) possession of goods 


Options are :

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

Answer :Both (i) and (ii)

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

Identify the following types of mortgages 1) The sale is ostensible and not real. (2) The mortgagee has the right to receive rent on the property mortgaged  (3) Mortgage is put through in a Notified area (4) Private Sale possible. 


Options are :

  • Simple Mortgage/English Mortgage/Equitable Mortgage/Anomalous Mortgage
  • Mortgage by way of Conditional Sale/Usufructuary Mortgage/Mortgage by way of Deposit of Title deeds/English Mortgage
  • Registered Mortgage/English Mortgage/Equitable Mortgage/Simple Mortgage
  • Mortgage by way of Conditional Sale/Equitable Mortgage/Usufructuary Mortgage/English Mortgage

Answer :Mortgage by way of Conditional Sale/Usufructuary Mortgage/Mortgage by way of Deposit of Title deeds/English Mortgage

An  Authorised  person  (AP)  may  be  a  ......  (i)  Authorised  Dealer  of  Category  I,  (ii)  Authorised  Dealer  of  Category II, (iii) money-changer 


Options are :

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

Answer :(i), (ii) and (iii)

No company other than a banking company can use the word ‘bank’ as part of its name. which of the following is exempted from this requirement (a) a govt. company (b) subsidiary of a bank (c) primary credit society: 


Options are :

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

Answer :b and c only

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

...... is terminated when the buyer gets the possession of the goods 


Options are :

  • lien
  • agreement
  • condition
  • warranty

Answer :lien

In bank guarantees, the bank makes payment on ...... 


Options are :

  • being convinced that the beneficiary has incurred loss
  • on being sued by the beneficiary
  • on the guarantee being invoked and after seeking concurrence of the debtor
  • merely on demand by the beneficiary

Answer :merely on demand by the beneficiary

As per Limitation Act 1963, if a suit is filed after the expiry period of limitation it shall be


Options are :

  • Entertained at discretion of the court
  • If case is genuine, it can be filed as a matter of right
  • Dismissed by the court
  • Any of the above

Answer :Dismissed by the court

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

Reserve Bank is empowered to conduct...... of a banking company under Section 35(1) of the BR Act.  


Options are :

  • inspection
  • special audit
  • audit
  • None of the above

Answer :inspection

As per Sale of Goods Act, the seller of goods is deemed to be unpaid seller, when the _____ ahs not been paid: 


Options are :

  • Interest
  • Price
  • Penalty
  • Damages

Answer :Price

When the transfer of the property in the goods is to take place at a contract is called ...... 


Options are :

  • contract of sale
  • agreement to sell
  • conract of future goods
  • contract of specific goods

Answer :agreement to sell

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

.....  goods are to be manufactured/produced/acquired by the seller after making of the contract of sale. 


Options are :

  • Future
  • Specific
  • Moveable
  • Immoveable

Answer :Future

Under the provisions of Section 22 of RBI Act


Options are :

  • RBI regulates the banks
  • RBI conducts govt. business
  • RBI is the sale authority to issue and manage currency in India
  • RBI issues note refund rules

Answer : RBI is the sale authority to issue and manage currency in India

Who among the following can be an Authorised Dealer of Category II? (i) Upgraded FFMCs, (ii) RRBs, (iii) Financial and other Institutions 


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 14

Under Section 35(4) of the BR Act, Central Government can prohibit a banking company from accepting fresh deposits if the business of the banking company is conducted .......  


Options are :

  • not profitably
  • not in compliance with the Act
  • to the detriment of interest of its depositors
  • None of the above

Answer :to the detriment of interest of its depositors

A lease for agricultural or manufacturing purpose can be terminated by the lesor or lessee by giving...... notice to one another


Options are :

  • 1 Month
  • 3 Months
  • 6 Months
  • 12 Months

Answer :6 Months

As per Sale of Goods Act, if there is breach of warranty, which of the following would be true


Options are :

  • The parties can reject the goods
  • The parties can treat the contract as repudiated
  • The parties can claim damages
  • All the above remedies are available

Answer :The parties can claim damages

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

Pari  passu  is  a  charge  which  does  not  indicate  ......  (i)  first  charge  over  securities,    (ii)  equal  charge  to charge holders, (iii) proportionate share to chargeholders 
 


Options are :

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

Answer :Only (i) and (ii

In case of ...... goods, Banker’s lien is not applicable


Options are :

  • owner’s goods
  • stolen goods
  • finished goods
  • None of these

Answer :stolen goods

The period of limitation can be got extended by  the creditor, in which of the following situations (which one is more appropriate): 


Options are :

  • If the borrower has acknowledge
  • If the borrower has acknowledge the debt within the limitation period
  • If the borrower has acknowledge the debt even after the limitation period
  • If the borrower has acknowledged the debt within or after the limitation period

Answer :If the borrower has acknowledge the debt within the limitation period

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

For action under SARFAESI Act, the account should be NPA


Options are :

  • As per discretion of the bank
  • As per directions framed by Reserve Bank of India
  • As per rules framed by RBI and Central Act
  • As per procedure given under SARFAESI Act

Answer :As per directions framed by Reserve Bank of India

A Bank has allowed a current A/c holder ad hoc overdraft of Rs 15 lakh. The amount is due. Whether this is recoverable under provisions of DRT Act? 


Options are :

  • No, as it is not a regular loan
  • No, as only secured loans can be recovered under the DRT Act.
  • Yes, as it is a legally recoverable amount by the Bank
  • Yes, but if the tribunal grants special permission to lodge the case

Answer :Yes, as it is a legally recoverable amount by the Bank

......... is one of the modes of lending by a banker. 


Options are :

  • Documentary Bills
  • Bill of purchase
  • Supply Bills
  • Bill finance

Answer :Bill finance

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

Besides the SARFAESI Act some other laws require some registration of charge created in the property. Whether such double registration is avoidable? 

 


Options are :

  • Yes, the creditor can choose under which law he needs registration
  • No. registration under SARFAESI Act as well as any other applicable law will have to be made, as SARFAESI Act is not substitution of any other law.
  • Yes, if one charge noting is by a registered document
  • No, as the Civil Courts and DRT still have jurisdiction against the properties both registration are required.

Answer :No. registration under SARFAESI Act as well as any other applicable law will have to be made, as SARFAESI Act is not substitution of any other law.

With a view to ensure that the controlling interest in a banking company does not change hands without the knowledge and approval of RBI


Options are :

  • The banking companies have to refer the matter to RBI before transfer of any amount of shares from one party to another party
  • The banking companies have to refer the matter to RBI & SEBI before transfer of substantial amount of shares from one party to another party
  • The banking companies have to refer the matter to RBI before transfer of a stipulated percentage of shares from one party to another party
  • The banking companies have to refer the matter to RBI, SEBI and Company Law Board before transfer of a stipulated percentage of shares from one party to another party

Answer :The banking companies have to refer the matter to RBI before transfer of a stipulated percentage of shares from one party to another party

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