JAIIB Legal & Regulatory Aspects Of Banking Mock Test Set 6

If a borrower has been outside India for some time, for the purpose of calculation of limitation, that period: 


Options are :

  • Shall be included
  • Shall be included if bank could not prove his absence
  • Shall be excluded
  • Shall be excluded if the bank could prove his absence

Answer :Shall be excluded

JAIIB Legal & Regulatory Aspects Of Banking Mock Test Set 7

Bank B sanctioned a term loan to a XYZ repayable in 28 quarterly instalments. The party did not few due instalments and bank wants to  file suit. Which of the following is most appropriate answer: 


Options are :

  • Bank can file the suit within 3 years for the entire amount
  • Bank can file the suit within 3 years for instalments no paid from due date of respective instalment
  • Bank can file the suit within 3 years for instalments not paid from due date of respective instalment and also the balance amount if the agreement provides for that
  • Bank can file suit for due amount and for the balance amount bank will have to wait

Answer :Bank can file the suit within 3 years for instalments not paid from due date of respective instalment and also the balance amount if the agreement provides for that

Charge means any form of ...... for ...... 


Options are :

  • Security, Debt
  • Debt, Security
  • pledge, Security
  • None of these

Answer :Security, Debt

Negative lien means 


Options are :

  • cancellation /release of lien marked on securities
  • prohibition of second encumbrance
  • prohibition of creating any charge
  • undertaking by executants not to encumber the unencumbered securities

Answer :prohibition of second encumbrance

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

RBI issues instructions on rate of interest to banks. The provisions u/s 21A of B R Act relate to: 


Options are :

  • Maximum interest rate ceiling imposed by RBI
  • Method for fixing BPLR
  • Rate of interest fixed by banks as per RBI guidelines are not subject to scrutiny by courts
  • In case of NPA accounts, interest can be debited only when it is recovered

Answer :Rate of interest fixed by banks as per RBI guidelines are not subject to scrutiny by courts

The process where the non-liquidated financial assets (say NPAs) are converted into marketable securities i.e security receipts, is called: 


Options are :

  • Liquidation of NPAs
  • factoring of NPAs
  • securitization of NPAs
  • reconstruction of NPAs

Answer :securitization of NPAs

Person who is not entitled to receive the benefit under a LC is... 


Options are :

  • Exporter
  • Beneficiary
  • Buyer
  • Seller

Answer :Buyer

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

Registration of charge with Roc need not be done  


Options are :

  • for hypothecation of stocks
  • for pledge of property
  • for mortgage of property
  • for hypothecation of vehicles

Answer :for pledge of property

ABC  Co.Ltd.  have a  current  account  operated  by  anyone  of  the  three  directors  A,  B  and  C  of  which A dies. A cheque for Rs 50000 signed by A previously, is presented for payment. The bank will  


Options are :

  • dishonour the cheque with the reason :"Signatory is dead "
  • honour the cheque as the company, the account holder has perpetual life
  • seek the company's advice
  • ask the company to stop the payment and issue a new cheque

Answer :honour the cheque as the company, the account holder has perpetual life

Pari passu is a charge indicating  


Options are :

  • first charge over securities
  • 2nd charge over securities
  • equal charge to charge holders
  • proportionate share to charge holders

Answer :proportionate share to charge holders

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

Which of the following statements, is correct regarding consumer protection act?  


Options are :

  • the act extends to whole of India except the state of jammu&Kashmir.
  • the act applies all goods and services except those notified by the central government
  • the act is called consumer protection act, 1986.
  • all the above

Answer :all the above

Which of the following rights are available to unpaid seller of goods (a) a lien on goods while he is in possession of goods (b) in case of buyer’s insolvency to stop goods in transit if possession parted with by the seller (c) to re-sell the goods 


Options are :

  • A and b only
  • B and c only
  • A and c only
  • All the above

Answer :All the above

Goods as defined under Sale of Goods Act does not include ......  


Options are :

  • grass
  • actionable claims
  • shares
  • stock

Answer :actionable claims

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

Which  from  amongst  the  following  is  a  reason  for  cancellation  of  registration  of  the  Securitisation company and reconstruction company without giving hearing opportunity?  


Options are :

  • The company does not keep accounts as per RBI norms
  • The company ceases to carry on the business of securitisation or reconstruction
  • The company falls to hodl investment from qualities investor.
  • The company does not fulfill any of the conditions imposed at the time of registration

Answer :The company ceases to carry on the business of securitisation or reconstruction

On giving default notice by the creditor, the borrower gives a reply to it. what the creditor should do?  


Options are :

  • Ignore the notice as the law does not provide for any reply option to the bank.
  • Wait till the borrower initiates any legal action based on his reply.
  • Give due consideration case by the Supreme Court and reply to it.
  • Take the matter before DRT for resolving issues raised in reply

Answer :Give due consideration case by the Supreme Court and reply to it.

On sale of security asset, the sale proceeds are appropriated firstly. 


Options are :

  • Towards satisfaction of dues of secured creditor
  • Towards payment of dues of labour
  • Towards payment of cost, charges and expenses for preservation and protection of securities, insurance premiums, etc
  • Towards payment of legal costs incurred by the creditor for taking possession and for effecting sale.

Answer :Towards payment of cost, charges and expenses for preservation and protection of securities, insurance premiums, etc

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

Which of the following statement is false:.


Options are :

  • An acquired bank’s undertaking is vested in Central Govt.
  • RBI or SBI can be appointed liquidator of a banking company
  • RBI can prepare a scheme for reconstruction or amalgamation of a bank under moratorium u/s 45 of B R Act
  • On winding up of a bank, all depositors as a class get the first preference for payment.

Answer :On winding up of a bank, all depositors as a class get the first preference for payment.

To get protection for any payment made by the bank, the payment should be in due course. Which among the following element is not essential for compliance of Section 10 of NI Act relating to payment in due course: 


Options are :

  • Payment to the person in possession of the instrument
  • Payment as per apparent tenor
  • Payment in good faith and without negligence
  • Payment only through clearing

Answer :Payment only through clearing

U/s 10 BB of Banking Regulation Act: 


Options are :

  • RBI can appoint an eligible person as Chairman of a banking company
  • Central Govt. can appoint an eligible person as Chairman of a banking company
  • Central Govt. can appoint an eligible person as Director of a banking company
  • All the above

Answer :RBI can appoint an eligible person as Chairman of a banking company

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

Alternate directors are appointed by the ...... 


Options are :

  • promoters
  • underwriters
  • shareholders
  • board of directors

Answer :board of directors

An  endorsement  in  which  endorser  waives  the  notice  of  dishonour  is  not  called  as  ......  (i) Facultative Endorsement, (ii) Restrictive endorsement, (iii) Conditional Endorsement 


Options are :

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

Answer :Only (ii) and (iii)

RBI is under obligation to undertake banking business for the central govt under the provision of ...  


Options are :

  • Section 22 of RBI Act
  • Section 21 of RBI Act
  • Section 20 of RBI Act
  • Result of agreement between RBI & Govt

Answer :Section 20 of RBI Act

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

A contract of indemnity differs from a contract of guarantee (a) there are 2 parties in indemnity and 3 in case of guarantee (b) the liability in case of indemnity is contingent and in case of guarantee it is subsisting (c) in case of indemnity there is only one contract but in case of guarantee there are three contracts: 


Options are :

  • A to c all correct
  • A and b only are correct
  • B and c only correct
  • A and c only are correct

Answer :A to c all correct

A company is under liquidation and the liquidator sells certain assets within his authority for which payment is received through a cheque. The liquidator obtains the payment across the counter and misappropriates the money. Later on, the next liquidator informs about misappropriation and requests the bank to reserve the entry. 


Options are :

  • Bank is not liable for this payment obtained by the liquidator
  • Bank is liable as it should have seen that the liquidator does not misappropriates the amount
  • Bank is liable as payment should have been collected by opening a bank account because the payment was on behalf of the company
  • Bank is liable as the company has suffered loss due to liquidator’s misappropriation

Answer :Bank is liable as payment should have been collected by opening a bank account because the payment was on behalf of the company

Usurious Loans Act 1918: 


Options are :

  • Restricts lending by banks to certain categories of borrowers
  • Prohibits lending by banking at exorbitant rates
  • Deals with usufructuary mortgage
  • Puts a ceiling on maximum rate of interest, that banks can charges

Answer :Prohibits lending by banking at exorbitant rates

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

Section 17 (1) of Banking regulation Act deals with which aspect of banking: 


Options are :

  • Transfer of a part of profits to a Statutory Reserve
  • Submission of information about unclaimed deposits
  • Loans by RBI to banks under Repo arrangement
  • Directions by RBI to banks on dividend payment

Answer :Transfer of a part of profits to a Statutory Reserve

In securitisation, who is the obligor? 


Options are :

  • Borrower
  • Lending Bank
  • Securitisation Company
  • None of the above

Answer :Borrower

Whether breach of RBI directives is punishable offence and to what extent? 


Options are :

  • Yes, fine up to five lakh rupees and for continuation of offence per day fine up to rupees ten thousand.
  • Yes, by cancellation of licenses of the company.
  • No, these are the administrative directions
  • No, the Act has not provided for any punishment in specific

Answer :Yes, fine up to five lakh rupees and for continuation of offence per day fine up to rupees ten thousand.

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

Provision of SARFAESI Act are applicable to which of the following?  


Options are :

  • Pledged goods.
  • Only mortgaged properties
  • Securities that are not otherwise charged to the creditors
  • Securities charged to creditors and not in possession of the creditor

Answer :Securities charged to creditors and not in possession of the creditor

3rd Schedule of banking Regulation Act is associated with: 


Options are :

  • Listing of name of a bank to make to scheduled bank
  • Format for preparing Balance Sheet of a bank
  • Format for submission of annual statement of assets and liabilities to RBI
  • Format for applying for obtaining a branch licence

Answer :Format for preparing Balance Sheet of a bank

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