JAIIB Legal & Regulatory Aspects Of Banking Mock Test Set 7

Regional Rural Banks have been created under RRB Act 1976 and their capital held is to the extent of ________ % by sponsor bank, ______% by Central Govt. and _____ % by State Govt.: 


Options are :

  • 35,50,15
  • 33,34,33
  • 50,35,15
  • 40,40,20

Answer :35,50,15

JAIIB Legal & Regulatory Aspects Of Banking Mock Test Set 8

Any Securitisation Company may 


Options are :

  • Act as an agent for any bank or FI for the purpose of recovering their dues from the borrower
  • Act as a manager for the secured assets
  • Act as receiver if appointed by any court or tribunal
  • Any/all of the above

Answer :Any/all of the above

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 hold investment from qualities investor.
  • The company does not fulfill any of the conditions imposed at the time of registration
  • Any of the above

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

An  entity  holding  not  less  than  10%  of  the  paid-up  equity  capital  of  Securitisation  or  reconstruction Company is called as 


Options are :

  • Originator
  • Secured Creditor
  • Sponsor
  • Secured debtor

Answer :Sponsor

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

Dividends are usually paid on


Options are :

  • Called-up-capital
  • Subscribed-capital
  • Paid-up-capital
  • Issued capital

Answer :Paid-up-capital

What are the impart benefits of SARFAESI Act, 2002 to the banks? 


Options are :

  • the banks can realise assets by selling or leasing without intervention or court
  • manage asset- liability mis- matches
  • improve liquidity and recovery position
  • all the above

Answer :all the above

An agreement between two parties by which one  party (the promisor) saves the other (promise) from the loss caused to one party due to conduct of the promisor or any other person is called _______: 


Options are :

  • Conversion
  • Subrogation
  • Promissory note
  • Indemnity

Answer :Indemnity

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

A bank receives a cheque issued by a society and signed by two authorized office bearers of the society. Later on it is claimed by the society that signatures of one of the authorized  signatory are forged: 


Options are :

  • The society continues to be liable as one signature is genuine
  • The 2nd signatory is personally liable as one signature is genuine
  • Society and the 2nd signatory are liable
  • Bank is liable for making the payment without proper mandate

Answer :Bank is liable for making the payment without proper mandate

Popular bank has issued a bank guarantee on behalf of its customer. The bank has given this guarantee to cover the security deposit which the govt. deptt. has asked for, to cover performance of a contract. The guarantee is a : 


Options are :

  • Legal guarantee
  • Financial guarantee
  • Performance guarantee
  • Performance-cum-financial guarantee

Answer :Financial guarantee

In a Bill of exchange normally who is not the Payee? (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 (ii)

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

In which of the forums appeals can be filed with against the orders of state commission? 


Options are :

  • national commission
  • high court
  • central government
  • any of these

Answer :national commission

A usance bill of exchange is accepted by the power of attorney holder of the drawee Mr. Sudhir. Subsequently, the said power of attorney is revoked by Mr. Sudhir bedfore the bill falls due for payment. Which of the following is correct? .


Options are :

  • The bill is deemed to have been accepted on which the principal shall remain liable
  • The bill is deemed to have not been accepted
  • The drawer can have recourse against the power of attorney holder only
  • Sudhir is justified in refusing the payment

Answer :The bill is deemed to have been accepted on which the principal shall remain liable

A complaint can be lodged in relation to any goods or services in the following circumstances; 


Options are :

  • loss or damage suffered on account of unfair trade practice
  • the goods suffer from one a more defects.
  • the services suffer from deficiency in any respect
  • all the above

Answer :all the above

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

A complaints under the consumer protection act, can be lodged by; 


Options are :

  • consumer himself or one or more consumers having common interest
  • a recognized consumer association
  • the central of state government
  • any of the above

Answer :any of the above

An equitable mortgage of an immovable property can be created (where it is located/ any where) but the place where it is created should be ________ or _______ notified by the _____ Govt: 


Options are :

  • Where it is located, presidency town, notified town, State
  • Any where, presidency town, notified town, State
  • Where it is located, presidency town, notified town, Central
  • Any where, presidency town, notified town, Central or State

Answer :Any where, presidency town, notified town, State

What kind of instructions the forum can issue to the opposite party?  


Options are :

  • to remove the defect of the goods
  • to replace the goods with new goods which shall be free from defect
  • to return to the complaint the price of goods or charges for se ices
  • any one of the above

Answer :any one of the above

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

To take care of temporary liquidity problems of central and state govt,what kind of loan is given by RBI ? 


Options are :

  • Treasury bills
  • Dated Securities
  • Short duration bonds
  • Ways & Means advances

Answer :Ways & Means advances

Who should maintain the Index of Register of Charges as per the Companies Act 


Options are :

  • Registrar of Companies
  • Lending Bank
  • Creditor
  • Debtor Company

Answer :Registrar of Companies

BR Act was enacted for ...... regulating acceptance of deposits from public. 


Options are :

  • Regulating banking companies
  • Creating Reserve Bank
  • Creating RRBs
  • None of these

Answer :Regulating banking companies

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

Under a contract of guarantee, the liability of the bank for giving a bank guarantee on behalf of its customer, which of the following is correct: 


Options are :

  • The primary liability to pay under the guarantee, is that of the borrower
  • The primary liability to pay under the guarantee, is that of the bank
  • The primary liability to pay under the guarantee, is that of the borrower and secondary liability is of the bank
  • The primary liability to pay under the guarantee, is that of the borrower and bank

Answer :The primary liability to pay under the guarantee, is that of the bank

There is regular between two parties through letter of credit but they want that may not be required to open a letter of credit again and again. What type of LC is suitable for them: 


Options are :

  • Irrevocable LC
  • Revolving LC
  • Red clause LC
  • Confirmed LC

Answer :Revolving LC

Which of the following charges in case of a company do not require to be registered u/s 125 of Companies Act: 


Options are :

  • A charge on book debts of the company
  • A floating charge on stocks of the company
  • A charge on immovable property of the company
  • A charge relating to contingent liabilities of the firm like letter of credit bank guarantee

Answer :A charge relating to contingent liabilities of the firm like letter of credit bank guarantee

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

Casual vacancies in the board of directors is filled in by the ...... 


Options are :

  • promoters
  • underwriters
  • shareholders
  • board of directors

Answer :board of directors

...... goods means goods identified and agreed upon at the time a contract of sale is made. 


Options are :

  • Future
  • Specific
  • Moveable
  • Immoveable

Answer :Specific

License of a bank is cancelled by RBI on the grounds that (a) the bank ceases to carry on banking business in India (b) the bank at any time failed to comply with the condition imposed u/s 22 sub-section 1 of B R Act (c) bank did not comply with the conditions stipulated u/s 22 subsection 3 or 3 A of B R Act (d) bank has defaulted to pay back deposit due to maturity mismatch on some occasion: 


Options are :

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

Answer :A, b and c only

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

Which of the following documents is called charter of the company: 


Options are :

  • Certificate of Commencement of Business
  • Certificate of Incorporation
  • Articles of Association
  • Memorandum of Association

Answer :Memorandum of Association

When a person by his words or conduct appoints someone as his agent it is known as agency by ...... 


Options are :

  • promise
  • conduct
  • estoppel
  • action

Answer :estoppel

If  the  stipulation  agreed  to  between  the  parties  is  essential  to  the  main  purpose  of  the  contract  then such a stipulation is known as a ...... 


Options are :

  • condition
  • warranty
  • implied condition
  • guarantee

Answer :condition

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

Which of the following statements, is correct? 


Options are :

  • The secured creditor can take possession of Asset 60 days after giving notice.
  • The Asset can be sold or transferred
  • It is mandatory for District Magistrate to take possession of Asset once written request is received from secured creditor
  • All the above

Answer :All the above

What is process of valuation of movable secured Assets? 


Options are :

  • The authorized officer shall obtain estimated value of asset.
  • Officer can fixed reserve price of Asset to be sold.
  • The borrower need not be involved in the process of valuation.
  • All the above

Answer :All the above

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