JAIIB Legal & Regulatory Aspects Of Banking Mock Test Set 5

A ......  is a stipulation collateral to the main purpose of the contract. 


Options are :

  • condition
  • warranty
  • implied condition
  • implied condition

Answer :warranty

JAIIB Legal & Regulatory Aspects Of Banking Mock Test Set 6

In which of the following mortgages, the possession of the immovable property is delivered to the bank, by the mortgager: 


Options are :

  • Simple mortgage
  • equitable mortgage
  • English mortgage
  • None of these

Answer :None of these

Guarantee obtained by ...... is invalid.. 


Options are :

  • consent
  • agreement
  • misrepresentation
  • contract

Answer :misrepresentation

The  exchange  control  copy  of  import  license  submitted  by  the  importer  for  opening  LC/making remittance should, after full utilisation, be ...... 


Options are :

  • forwarded to RBI along with ‘R’ Return
  • retained by AD for scrutiny by inspecting officials
  • handed over to the importer
  • forwarded to the Trade Control authorities

Answer :retained by AD for scrutiny by inspecting officials

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

Lien of unpaid seller is  terminated when


Options are :

  • The buyer gets possession of the goods
  • The seller gets possession of the goods
  • The buyer leaves the possession of the goods
  • None of the above

Answer :The buyer gets possession of the goods

In case of a mortgage suit, for the suit filed in a civil Court, the decree of mortgage is: 


Options are :

  • Initial decree and absolute decree
  • Preliminary decree and final decree
  • Preliminary decree and absolute decree
  • Initial decree and final decree

Answer :Preliminary decree and final decree

Importers should retire the demand bills drawn under LC on ...... 


Options are :

  • the day on which the bill is received at the branch
  • before the expiry date of license
  • within 10 days from the date of receipt of the bill
  • no specific period

Answer :within 10 days from the date of receipt of the bill

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

Dollar has shown increase in its value compared to Indian rupee. Which of the following would be true ? 


Options are :

  • Exports from India will go up
  • Imports into India will become costly
  • Trade with other nations will be reduced
  • b or c

Answer :Imports into India will become costly

When  the  provisions  of  SARFAESI  Act,  2002  can  be  invoked for proceeding  against  the  charged property? 


Options are :

  • When the bank feels that it is necessary for the recovery at any time.
  • When the RBI directs to do so
  • When there is default in repayment by the borrower.
  • When there is default in repayment and the bank declares the account as NPA.

Answer :When there is default in repayment and the bank declares the account as NPA.

Current deposits are not entitled to ...... 


Options are :

  • Cheque book
  • Statements
  • Customer service
  • interest

Answer :interest

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

Which of the following mortgages, does not require registration with Registrar of Assurances: 


Options are :

  • Equitable mortgage
  • English Mortgagee
  • Usufructuary Mortgage
  • Simple Mortgage

Answer :Equitable mortgage

The ‘fit and proper’ criteria is used


Options are :

  • By companies while conducting the shareholders’ meeting
  • By companies while appointing directors
  • By companies while appointing the managing director
  • By companies passing resolutions by the Board members

Answer :By companies while appointing directors

Introduction in all deposits accounts is ......  


Options are :

  • optional
  • compulsory
  • discretion of the bank
  • None of these

Answer :compulsory

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

Section ...... of the company Act details the borrowing limits of the company.  


Options are :

  • 85(A)
  • 31
  • 293(1)
  • 5(b)

Answer :293(1)

The Trustees ...... delegate their powers. 


Options are :

  • Can
  • Cannot
  • depend on situation
  • None of these

Answer :Cannot

Which of the following is not suitably matched


Options are :

  • Section – 8 of B R Act : prohibitions for a banking company for trading activities
  • Section – 9 of B R Act: holding immovable property for period exceeding 7 years except for its own use
  • A banking company can be promoted under a special statute to company registered under banking Regulation Act
  • Authority to specify the activities that can be undertaken by a bank u/s 5 (0) of banking Regulation Act- Central Govt.

Answer :A banking company can be promoted under a special statute to company registered under banking Regulation Act

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

RBI can make application to High Court for winding up of a banking company (a) of govt. directs RBI to do so (b) company fails to maintain minimum paid up capital and reserves as per Sec 11 of B R Act(c) RBI has prohibited the bank to accept fresh deposits u/s 35-4 of B R Act (d) bank has fail to remain entitled to carry on banking activities: 


Options are :

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

Answer :A to d all correct

Bailment of goods as security for payment of a debt is called  


Options are :

  • Lien
  • Pledge
  • Hire
  • Mortgage

Answer :Pledge

If  the  sale  of  goods  is  by  ......    there  is  an  implied  condition that  the  goods  shall  correspond  with  the description.  


Options are :

  • description
  • sample
  • oral agreement
  • written contract

Answer :description

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

A lease for agricultural or manufacturing purpose is deemed to be a ...... lease 


Options are :

  • month to month
  • week to week
  • with infinite period
  • year to year

Answer :year to year

A minor can be ...... of a partnership firm  


Options are :

  • partner of the firm
  • admitted to the benefits
  • either a or b
  • neither a not b

Answer :admitted to the benefits

Section 45s of RBI Act relates to which of the following: 


Options are :

  • Prohibits unincorporated association of persons from accepting deposits from public
  • Prohibits banks from accepting deposits from public
  • Allow govt. companies for accepting deposits from public
  • Restrict the banks to pay counter interest

Answer :Prohibits unincorporated association of persons from accepting deposits from public

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

What does execution of document signify


Options are :

  • It must be properly executed as per the specimen signatures recorded with the bank
  • It should be properly stamped
  • It should be registered, if required.
  • All the above

Answer :All the above

For the purpose of exposure norms, what is the meaning of 'Group'? 


Options are :

  • Majority of the directors should be common
  • The Managing Director should be same
  • Commonality of Management and effective control
  • All of these

Answer :Commonality of Management and effective control

A bank is offered the following securities by a borrower to secure his loan, which of these will be given preference over the other securities: 


Options are :

  • Mortgage of a commercial show room valuing 200% of loan amount
  • Hypothecation of stocks of goods valuing 150% of loan amount
  • Shares of a reputed company listed on a stock exchange being 200% of loan amount
  • Life insurance policy issued by LIC of India being 125% of loan amount

Answer :Life insurance policy issued by LIC of India being 125% of loan amount

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

Which among the following cannot accept deposits from public except relatives u/s 45-s of RBI Act: (a) individuals (b) firms (c) unincorporated association of person (d) primary credit society. Whose principal business is lending or acceptance of deposits 


Options are :

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

Answer :A to c all

As  per  Section  19(2)  of  the  Banking  Regulation  Act,  1949,  a  banking  company  can  hold shares  in  any company, whether as pledge, mortgagee or absolute owner, up to: 


Options are :

  • 30% of the paid-up share capital of that company
  • 30% of paid-up share capital and reserves of the bank
  • 30% of paid-up share capital and reserves of that company
  • a or b whichever is less

Answer :a or b whichever is less

Maximum  advance  from  the  banking  system  that  can  be  allowed  to  an  individual  against  shares, convertible bonds, convertible debentures and units of equity oriented mutual funds is restricted to: 


Options are :

  • Rs:10 lakh if the securities are held in physical form
  • Rs: 20 lakhs if the securities are held in dem-at form
  • Rs 20 lakhs whether securities are in physical or demat form
  • Both a & b

Answer :Both a & b

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

How  much  minimum  margin  should  be  kept  by  banks  while  issuing  guarantees  on  behalf  of  stock brokers or brokers in commodity exchange? 


Options are :

  • 50% of which cash margin should be minimum 25%
  • 25% with no sub limit for cash margin
  • 100% of which cash margin should be minimum 50%
  • 50% with no sub limit for cash margin

Answer :50% of which cash margin should be minimum 25%

Only personal security of the borrower is available in the case of ...... loans. 


Options are :

  • Secured
  • Unsecured
  • Both a and b
  • None of these

Answer :Unsecured

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