JAIIB Legal & Regulatory Aspects Of Banking Mock Test Set 4

Evidence means: 


Options are :

  • All statements presented before a court by way of witnesses.
  • It is in relation to a matter of fact under inquiry.
  • Such statements are called oral evidence.
  • All the above

Answer :Such statements are called oral evidence.

JAIIB Legal & Regulatory Aspects Of Banking Mock Test Set 5

Forex Transactions under FEMA can be classified into ...... (i) current account, (ii) capital account 


Options are :

  • Only (i)
  • Only (ii)
  • Either (i) or (ii)
  • Neither (i) nor (ii)

Answer :Either (i) or (ii)

When  the  LC  specifies the Bank  that  is  to  negotiate the  bills  drawn under  the  LC  then the  bank  is  also called ? 


Options are :

  • Confirming Bank
  • Reimbursing Bank
  • Nominated Bank
  • None of the above

Answer :Nominated Bank

If an official of a bank is removed from office by RBI, he is: 


Options are :

  • Entitled to compensation for loss of office
  • Not entitled to compensation for loss of office, even when it is started in the service contract
  • Entitled to compensation for loss of office, when it is stated in the service contract
  • Not entitled to compensation for loss of office, when not stated in the service contract

Answer :Not entitled to compensation for loss of office, even when it is started in the service contract

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

Every person whose total income in a previous year exceeds the maximum amount which is not liable to tax, is required to file his return by due date u/s _______ of Income Tax: 


Options are :

  • Section 10
  • Section 131
  • Section 133
  • Section 139

Answer :Section 139

The provisions of a scheme of amalgamation sanctioned by the Central Government under Section 45 of the BR Act will ...... the provisions of other laws.  
 


Options are :

  • not affect
  • have overriding effect on
  • will be subject to
  • None of the above

Answer :have overriding effect on

When the confirming bank confirm the credit it 


Options are :

  • does not take any liability
  • undertakes on its part the liability under the LC
  • undertakes to make timely of the documents and bills to the buyer or his bank
  • None of the above

Answer :undertakes on its part the liability under the LC

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

When RBI makes borrowing costly for certain purposes or stipulated higher margins for certain type of advances, this is part of


Options are :

  • Credit policy directives
  • Control over bank advances
  • Selective credit control
  • Credit delivery mechanism

Answer :Selective credit control

The LC issuing bank is also called


Options are :

  • the importers bank or the opening bank
  • the advising bank or the confirming bank
  • the negotiating bank or the nominated bank
  • the reimbursement bank

Answer :the importers bank or the opening bank

When the LC specifies the Bank that is to negotiate the bills drawn under the LC, then the bank is also called...... 


Options are :

  • Confirming Bank
  • Reimbursing Bank
  • Nominated Bank
  • None of the above

Answer :Nominated Bank

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

A contract without ...... is void


Options are :

  • Indemnity
  • Guarantee
  • Consideration
  • Cash

Answer :Consideration

An agency can be terminated when 


Options are :

  • Agent giving up the business
  • Principal revoking his authority
  • Business of the agency is completed
  • Any one of the above

Answer :Any one of the above

At  least  ......  of  the  total  number  of  directors  of  a  public  company  are  to  be  persons  whose  period  of office is liable to determination by retirement by rotation. 

 


Options are :

  • 1/2
  • 1/3
  • 2/3
  • 1/4

Answer :2/3

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

Surety's liability is ....... if the principal debtor is released by the creditor. 
 


Options are :

  • discharged
  • liable
  • either a or b
  • None of these

Answer :discharged

Name if a bank can be included in the 2nd Schedule of RBI Act to make it a scheduled bank if (a) it is state coop bank (b) company defined u/s 3 of Companies Act (c) an institution notified by the Central Govt. in this behalf (d) company incorporated outside India under the foreign law. 


Options are :

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

Answer :A to d all

To fulfill its SLR requirement, a bank , among others, can invest in approved securities, which means the securities: 


Options are :

  • u/s 12 of banking regulation Act
  • u/s 20 of Indian Trust Act
  • u/s 18 of Govt. Securities Act
  • u/s 343 of Companies Act

Answer :u/s 20 of Indian Trust Act

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

Ordinary Letter of Credit are usually ......, i.e, the bills drawn there under have to be immediately


Options are :

  • Sights credits
  • Acceptance credits
  • Either a or b
  • None of these

Answer :Sights credits

Which among the following statement is not correct with regard to publication of accounts and balance sheet of a bank: 


Options are :

  • Publication has to be in a newspaper in circulation at the place where the principal office of the banking company is located
  • Publication within 6 months from end of the period to which the account and balance sheet relate
  • Publication only in a newspaper that is published every day
  • Publication u/s 31 of B R Act

Answer :Publication only in a newspaper that is published every day

In a Revocable LC the credit can be amended or cancelled by the ...... 


Options are :

  • Confirming Bank
  • Reimbursing Bank
  • Issuing bank
  • Nominated Bank

Answer :Issuing bank

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

Depending upon the place where the bills are made, they can be classified into 


Options are :

  • Inland Bills
  • Foreign Bills
  • Either a or b
  • None of these

Answer :Either a or b

Letter of Credit under which usance bills can be drawn is called an ...... 


Options are :

  • Sights credits
  • Acceptance credits
  • Either a or b
  • None of these

Answer :Acceptance credits

Which of the following is not correct in the context of protection to paying bank: 


Options are :

  • Section 85-A provides protection for payment of an endorsed cheque
  • Section 85-1 provides protection for payment of a bearer endorsed cheque
  • Section 89 provides protection for payment of a materially altered cheque
  • Section 128 provides protection for payment of a crossed cheque.

Answer :Section 85-A provides protection for payment of an endorsed cheque

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

A bank makes payment of a cheque bearing forged endorsement of the payee. Later on it is found that bank has made payment  to a wrong person on the basis of forgery: 


Options are :

  • Bank is not liable for forgery if it appears to be by the payee
  • Bank is liable for the forgery, as it is not a cheque or endorsement at all
  • Bank is not liable for a forged endorsement, where it is regular.
  • Bank is liable for the forged endorsement but not for the forged signature of the drawer

Answer :Bank is not liable for a forged endorsement, where it is regular.

Universal Bank made payment of a cheque of large amount which was later on found to be materially altered. The alteration was not visible. But when the cheque was put before ultra-violet lamp, the alteration was visible. The drawee claimed that the bank was negligent for not examining the cheque before the ultra-violet lamp.  


Options are :

  • Bank not liable as bank is not required to examine each cheque before the ultra violet lamp .
  • Bank is liable to the party as the cheque was of a large amount and bank has not taken adequate precaution
  • Bank and party are liable on pro-rata basis
  • Alternation does not give any protection to the bank, hence bank is liable

Answer :Bank not liable as bank is not required to examine each cheque before the ultra violet lamp .

Pledge means ...... of goods for purpose of securing a payment of debt or performance of promise. 


Options are :

  • Lien
  • Bailment
  • Assignment
  • None of these

Answer :Bailment

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

Section 22 of RBI acts relate which aspects of banking ? 


Options are :

  • RBI authority to regulate credit
  • RBI authority to regulate banking business
  • RBI authority to function as bank for govt business
  • RBI authority to issue & manage currency in India

Answer :RBI authority to issue & manage currency in India

"Bills payable after sight" is 


Options are :

  • Demand Bill
  • Clean Bill
  • Usance Bill
  • None of the above

Answer :Usance Bill

Mandate is ...... 


Options are :

  • Signed letter to the Bank
  • Order of the court of law
  • Memorandum of understanding
  • Unstamped letter to the Bank

Answer :Unstamped letter to the Bank

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

Person  to  whom  a  power  of  attorney  is  given  is  called  ......  and  the person  who  gives  the  Power  of attorney is called ...... 


Options are :

  • Debtor, Creditor
  • Bailor, Bailee
  • Agent, Principal (donor, donee)
  • None of these

Answer :Agent, Principal (donor, donee)

X deposited a cheque of Rs.1000 with his bank for collection from another bank. The account is being conducted satisfactorily for 10 months. At the time of deposit of cheque with the collecting bank it was an uncrossed cheque. The collecting bank, by putting its own stamp, collected the cheque. Later on it turned out to be a case of conversion (collection of cheque for a wrong customer). What will be the liability of the bank. 


Options are :

  • The bank is not liable as it has collected the cheque for a customer
  • The bank is not liable as it has collected a specially crossed cheque
  • The bank is liable as the cheque was not crossed at the time of deposit by the customer
  • The bank is liable as bank is negligent in not getting the cheque crossed from the customer before receiving the cheque for collection

Answer :The bank is not liable as it has collected a specially crossed cheque

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